South Australian Consolidated Acts South Australian Consolidated Acts53—Co-operative financing dealings in its shares etc
(1) Except as
otherwise expressly provided by this Act, a registered housing co-operative
must not, without the approval of the Minister—
(a)
whether directly or indirectly, give any financial assistance for the purpose
of, or in connection with, the acquisition by any person, whether before, or
at the same time as, the giving of financial assistance, of investment shares
in the co-operative; or
(b)
whether directly or indirectly, lend money on the security of
investment shares in the co-operative.
(2) A reference in
this section to the giving of financial assistance includes a reference to the
giving of financial assistance by means of the making of a loan, the giving of
a guarantee, the provision of security, the release of an obligation, the
forgiving of a debt or otherwise.
(3) For the purposes
of this section, a co-operative is to be taken to have given financial
assistance for the purpose of an acquisition or proposed acquisition (in this
subsection referred to as the "relevant purpose ) if—
(a) the
co-operative gave the financial assistance for purposes that included the
relevant purpose; and
(b) the
relevant purpose was a substantial purpose of the giving of the financial
assistance.
(4) If a co-operative
contravenes subsection (1), the co-operative is not guilty of an offence
but each officer of the co-operative is guilty of an offence.
Maximum penalty: $10 000 or imprisonment for 2 years.
(5) Where—
(a) a
person is convicted of an offence against subsection (4); and
(b) the
court by which he or she 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.
(6) 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 (4) 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 (4) in relation to that contravention, as a debt due to the
co-operative by action in any court of competent jurisdiction.