South Australian Consolidated Acts South Australian Consolidated Acts57—Redemption of investment shares
(1) Subject to this
section, a registered housing co-operative may redeem any parcel of
investment shares issued by the co-operative.
(2) The shares may not
be redeemed on the co-operative's own initiative except—
(a)
—
(i)
on such terms and conditions and in such manner as are
provided by the rules of the co-operative; and
(ii)
with the approval of the Minister and subject to such
conditions (if any) as the Minister may attach to that approval; or
(b) in
any other circumstance of a prescribed kind.
(3) Subject to
subsection (5), investment shares must be redeemed by a registered
housing co-operative—
(a) on
application in the prescribed form by the holder of the shares under
subsection (4); or
(b) on
notification to the co-operative that the holder of the shares has died; or
(c)
—
(i)
in the case of shares issued to a person who was, or who
had been approved to become, a tenant-member of the co-operative at the time
of the issue of the shares—if the shareholder ceases to be a
tenant-member of the co-operative, or does not become a tenant-member of the
co-operative within three months after it is proposed by the co-operative that
he or she become a tenant-member of the co-operative;
(ii)
in any other case—in circumstances determined by
the Minister at the time that the Minister gives approval to the issue of the
shares; or
(d) in
the case of shares issued in relation to a particular residential property, on
the transfer of the property (or any part of the property); or
(e) in
any other circumstance of a prescribed kind.
(4) An application can
only be made under subsection (3)(a) if the Minister is satisfied—
(a) that
the holder of the shares is experiencing, or in danger of experiencing, severe
financial difficulties; and
(b) that
it is appropriate that the shares be redeemed.
(5) The co-operative
may take up to three months to redeem investment shares under
subsection (3).
(6) The holder of the
shares is entitled to the statutory price payable on the shares as at the day
of redemption.
(7) Subject to this
Act, where SAHT is holding money paid on investment shares of the
co-operative, the co-operative is entitled to request SAHT to provide the
money payable on the redemption of those shares under this section.
(8) Shares are to be
taken to be redeemed notwithstanding that a cheque given in payment of the
amount payable on redemption of the shares has not been presented for payment.
(9) If a co-operative
fails to comply with this section, the co-operative is guilty of an offence.
Maximum penalty: $10 000.