New South Wales Consolidated Acts

CO-OPERATIVE HOUSING AND STARR-BOWKETT SOCIETIES ACT 1998 - SECT 42

42 Power to suspend operations

(1) If the Registrar considers that it is necessary to do so:

(a) in the interests of members or creditors, or persons who may become members or creditors, of a co-operative housing body, or

(b) because a co-operative housing body has failed to comply with a standard,

the Registrar may, by written notice given to the body, direct the body not to do any of the following:

(c) give any financial accommodation to members,

(d) borrow any amount,

(e) accept any payment on account of share capital except calls that fell due before the notice was given,

(f) repay any amount paid on shares,

(g) repay any money on loan,

(h) pay or transfer an amount to any person, or create an obligation to do so.

(2) A notice under subsection (1) continues in force until it expires, or is withdrawn by the Registrar.

(3) The Registrar may, by a further written notice given to the co-operative housing body:

(a) extend the period for which a notice under subsection (1) is to have force, or

(b) amend the terms of the notice, or

(c) withdraw the notice.

(4) If a co-operative housing body fails to comply with a notice under this section, the body and any officer of the body who is in default each commit an offence.

Maximum penalty: 50 penalty units or imprisonment for 12 months, or both.

(5) Subsection (4) does not apply if the failure to comply happens with the written permission of the Registrar.