South Australian Consolidated Acts South Australian Consolidated Acts51—Issue of investment shares
(1) The rules of a
registered housing co-operative may, if approved by unanimous resolution of
the co-operative, provide for the issue of investment shares in the
co-operative.
(2) The following
terms and conditions apply in relation to investment shares:
(a) each
share must be issued as a fully paid-up $1 share;
(b)
unless the Minister otherwise approves, an investment share may only be issued
to a person who is, or who has been approved to become, a tenant-member of the
co-operative;
(c) an
investment share is not transferable;
(d) the
holder of investment shares is not, by virtue of holding those shares,
entitled to exercise any special or additional voting rights at a meeting of
the co-operative;
(e) the
holder of an investment share is, on the redemption or cancellation of the
share, entitled to the statutory price for the share in accordance with this
Act, but otherwise no dividend or interest is payable on the share.
(3) Unless the
co-operative has resolved otherwise by unanimous resolution, a registered
housing co-operative must not require that a person hold investment shares in
the co-operative to become or to remain as a tenant-member of the
co-operative.
(4) The regulations
may prescribe a minimum number of shares that must make up an allotment of
investment shares.
(5) Investment shares
may only be dealt with as whole parcels, as issued at a particular time by the
relevant co-operative.
(6) An
investment share must, according to the rules of the co-operative, be issued
in relation to—
(a) a
particular residential property of the co-operative; or
(b) the
real property of the co-operative generally.
(7) A registered
housing co-operative must not issue investment shares except—
(a) for
cash; or
(b) for
some other form of consideration.
(8) A registered
housing co-operative must not issue investment shares at a discount or
premium.
(9) A registered
housing co-operative must not issue any share warrant.
(10) Where—
(a)
the rules of a registered housing co-operative provide for the issue of
investment shares; and
(b) a
person who is, or who has been approved to become, a tenant-member of the
co-operative, applies for the issue to him or her of a specified number of
investment shares and provides the appropriate consideration; and
(c) the
issue of the shares to the person would not be contrary to this Act; and
(d) the
issue of the shares to the person would not be contrary to any rule of the
co-operative that limits the number of investment shares that a person can
hold in the co-operative,
the co-operative must issue the shares in accordance with the application.
(11) Subject to this
section and the other provisions of this Act or the regulations, the rights
attaching and the terms and conditions applying to any investment shares
issued by a registered housing co-operative will be as provided in the rules
of the co-operative or determined by the committee of management of the
co-operative in accordance with the rules (but no such rules may be registered
unless the provisions in respect of those rights, terms and conditions comply
with the requirements of this Act and the regulations and are, in the opinion
of the Minister, otherwise appropriate).
(12) If a co-operative
contravenes this section, the co-operative is not guilty of an offence against
this Act but each officer of the co-operative is guilty of an offence.
Maximum penalty: $10 000 or imprisonment for 2 years.
(13) Where—
(a) a
person is convicted of an offence against this section in relation to a
co-operative; and
(b) the
court by which the person is convicted is satisfied that the co-operative has
suffered loss or damage as a result of the act or omission that constituted
the offence,
the court may, in addition to imposing a penalty—
(c)
order the convicted person to pay compensation to the co-operative of such
amount as the court specifies;
(d)
order the convicted person to undertake, in accordance with the terms of the
order, specified work for the benefit of the co-operative.
(14) Where a
contravention of this section takes place—
(a) if a
person other than the co-operative concerned, being a person who was, at the
time of the contravention, aware of the matters constituting the
contravention, has made a profit as a result of the contravention, the
co-operative may, whether or not that person or any other person has been
convicted of an offence against subsection (12) in relation to that
contravention, recover from the person as a debt due to the co-operative by
action in any court of competent jurisdiction an amount equal to the profit;
and
(b)
where the co-operative concerned has suffered loss or damage as a result of
the contravention—the co-operative may recover an amount equal to the
loss or damage from any person who is in default, whether or not that person
or any other person has been convicted of an offence against
subsection (12) in relation to that contravention, as a debt due to the
co-operative by action in any court of competent jurisdiction.