AustLII Tasmanian Consolidated Acts

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COOPERATIVES ACT 1999 - SECT 40

40. Results of contravention of restriction in rules

      (1) The exercise of a power or the doing of an act in contravention of section 39 is not invalid merely because of the contravention.

      (2) An act of an officer of a cooperative is not invalid merely because, by doing the act, the officer contravenes section 39.

      (3) The fact that the exercise of a power or the doing of an act contravenes or would contravene section 39 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 453 to restrain the cooperative from entering into an agreement; or

(d) proceedings, other than an application for an injunction, by the cooperative, or by a member of the cooperative, against the present or former officers of the cooperative; or

(e) an application by the Commissioner or by a member of the cooperative for the winding-up of the cooperative.

      (4) If, but for subsection (3), a court would have power under section 453 to grant, on the application of a person, an injunction restraining a cooperative or an officer of a cooperative from engaging in particular conduct constituting a contravention of section 39, the court may, on the application of that person, order the cooperative or the officer to pay damages to that person or any other person.



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