South Australian Consolidated Acts South Australian Consolidated Acts (1) The Minister may,
if satisfied that it is appropriate to do so, by notice in writing to a
registered housing co-operative, declare that there are grounds for
intervention in the affairs of the co-operative under this section.
(2) The grounds on
which the Minister may make a declaration under subsection (1) in
relation to a registered housing co-operative are—
(a) that
the co-operative has ceased to be administered on the basis of the
principles of co-operation; or
(b) that
the co-operative does not commence operations within six months from its
incorporation or suspends or ceases its operations for six months or more; or
(c) that
serious irregularities or difficulties have occurred or arisen in the
management of the co-operative or the administration of its affairs; or
(d) that
the co-operative has ceased to be managed by tenant-members of the
co-operative; or
(e) that
the committee members of the management committee have acted in the affairs of
the co-operative in their own interests rather than in the interests of the
members as a whole, or in any other manner that appears to be unfair or unjust
to other members; or
(f) that
the co-operative is experiencing serious internal disputes or otherwise is not
functioning in a proper manner; or
(g) that
the co-operative has insufficient members to operate efficiently and
effectively; or
(h) that
there are insufficient committee members to form a quorum of the
committee of management; or
(i)
that the by-laws of the co-operative contain an
unreasonable provision that affects the rights of members of the co-operative;
or
(j) that
an irregularity has occurred in relation to the issue, redemption or
cancellation of any shares in the co-operative; or
(k) that
the co-operative has contravened or failed to comply with a condition imposed
in relation to the co-operative by SAHT or the Minister under this Act; or
(l) that
the co-operative has failed to comply with a term of an agreement under Part
7; or
(m) that
the co-operative has intentionally committed a serious breach of this Act or
the rules of the co-operative; or
(n) that
the co-operative has committed any breach of this Act or the rules of the
co-operative and the co-operative has, after notice by the Minister of the
breach, failed, within the time referred to in the notice, to remedy the
breach; or
(o) that
the co-operative is insolvent or in danger of becoming insolvent or has taken
unreasonable action contrary to the interests of its creditors; or
(p) such
other grounds as may be prescribed by the regulations.
(3) Before the
Minister makes a declaration under this section, the Minister must appoint an
independent investigator or investigators to carry out an investigation and
report to the Minister on the matter.
(4) The investigator
or investigators must give the co-operative a reasonable opportunity to make
submissions in relation to the matter.
(5) Where the Minister
makes a declaration under this section in relation to a registered
housing co-operative, the Minister may do one or more of the following:
(a)
order an audit of the affairs of the co-operative by an auditor approved by
the Minister at the expense of the co-operative;
(b)
require the members of the co-operative to take specified action to ensure
that the co-operative is acting efficiently, effectively and co-operatively;
(c)
require the co-operative to take specified action to ensure compliance with
this Act or the rules of the co-operative;
(d)
require the co-operative to correct specified irregularities or to reverse
specified action;
(e)
require the co-operative to apply specified management practices;
(f)
stipulate principles in accordance with which the affairs of the co-operative
are to be conducted;
(g)
require the co-operative to alter its rules;
(h) as
the Minister thinks fit—
(i)
remove a committee member from office; or
(ii)
suspend or terminate the membership of a member of the
co-operative; or
(iii)
prohibit or restrict the raising of funds by the
co-operative or the exercise of any other power of the co-operative;
(i)
if the co-operative is a subsidised co-operative—
(i)
appoint an administrator (who must not be a member of the
staff of the Department) to conduct the affairs of the co-operative;
(ii)
require the co-operative to dispose of specified property
of the co-operative in accordance with the directions of the Minister;
(j)
require members of the co-operative to attend any conference called by a
person nominated by the Minister with a view to overcoming any problem within
the co-operative by discussion and conciliation;
(k)
determine to initiate steps to wind up the co-operative;
(l) take
such other action as may be prescribed by the regulations.
(6) Where a
co-operative is required to alter its rules under subsection (5)—
(a) the
co-operative is not required to do so by special resolution or to obtain the
approval of its members; and
(b) the
Minister may himself or herself make the required alteration by notation on
registers of the Minister if the co-operative fails to comply with the
requirement within a reasonable time.
(7) A direction of the
Minister under subsection (5)(i) may include a direction that property be
transferred to the Minister or SAHT.
(8) If the Minister
has made a declaration under this section in relation to a registered
housing co-operative, the Minister may, of his or her own motion, or on
application in writing by the co-operative, if satisfied that it is
appropriate to do so, by notice in writing to the co-operative, revoke the
declaration.