Queensland Consolidated Acts Queensland Consolidated Acts(1) When a member is expelled from a cooperative under its rules, the cooperative must, within 1 year after the day of expulsion--
(a) repay to the former member an amount (the repayable amount) made up of the amount paid up on the shares held by the member at the day of expulsion, less any amount owed by the member to the cooperative at the day of expulsion under the rules of the cooperative or any contract or otherwise; or
(b) apply the repayable amount under subsection (2) if--
(i) the board considers repayment would adversely affect the financial position of the cooperative; or
(ii) the board and the former member agree.
(2) The repayable amount may be applied in 1 of the following ways--
(a) the cooperative may appropriate the amount as a donation to the cooperative, but only if the former member consents in writing to the donation;
(b) if the cooperative is a deposit-taking cooperative--the cooperative may apply the amount as a deposit by the former member with the cooperative;
(c) the cooperative may allot or issue debentures of the cooperative to the former member in satisfaction of the amount.25
(3) If the balance sheet of the cooperative last issued before the expulsion of a member of the cooperative disclosed a loss or deficiency, there must be a proportionate reduction in the capital to be repaid to the member.
(4) That reduction must be by an amount that bears to the amount of the loss or deficiency so disclosed in 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 cooperative as at the date of expulsion of the member.
(5) Shares for which capital has been repaid must be cancelled.