Northern Territory Consolidated Acts Northern Territory Consolidated Acts77. Repayment of shares on expulsion
(1) When a member is expelled from a co-operative in accordance with its rules, the co-operative must repay to the member the amount paid up on the shares held by the member at the date of expulsion, less any amount owed by the member to the co-operative at the date of expulsion under the rules of the co-operative or any contract or otherwise.
(2) If the balance sheet of the co-operative last issued before the expulsion of a member of the co-operative disclosed a loss or deficiency, there must be a proportionate reduction in the capital to be repaid to the member.
(3) That reduction must be by an amount that bears to the amount of the loss or deficiency so disclosed the same proportion as the number of shares held by the member bore to the total number of shares held by all members of the co-operative as at the date of expulsion of the member.
(4) Payment of any amount due to a member under this section must be made at the time determined by the board of the co-operative, but not later than 12 months after the date of expulsion.
(5) Shares in respect of which capital has been repaid must be cancelled.