South Australian Consolidated Acts

CO-OPERATIVES ACT 1997 - SECT 42

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; or

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

            (c)         an application for an injunction under section 447 to restrain the co-operative from entering into an agreement; or

            (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 Commission 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 447 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.