Northern Territory Consolidated Acts

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CO-OPERATIVES ACT - SECT 42

Results of contravention of restriction in rules

42. Results of contravention of restriction in rules

(1) The exercise of a power or the doing of an act in contravention of section 41 is not invalid merely because of the contravention.

(2) An act of an officer of a co-operative is not invalid merely because, by doing the act, the officer contravenes section 41.

(3) The fact that the exercise of a power or the doing of an act contravenes or would contravene section 41 may be asserted or relied on only in:

(a) a prosecution of a person for an offence against this Act;

(b) an application for an order under Division 5 of Part 4;

(c) an application for an injunction under section 451 to restrain the co-operative from entering into an agreement;

(d) proceedings, other than an application for an injunction, by the co-operative, or by a member of the co-operative, against the present or former officers of the co-operative; or

(e) an application by the Registrar or by a member of the
co-operative for the winding up of the co-operative.

(4) If, but for subsection (3), a court would have power under section 451 to grant, on the application of a person, an injunction restraining a co-operative or an officer of a co-operative from engaging in particular conduct constituting a contravention of section 41, the court may, on the application of that person, order the co-operative or the officer to pay damages to that person or any other person.



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