338Disclosure statement

#### 338 Disclosure statement 338 Disclosure statement > > (1) This section applies to the issue of debentures of a co-operative if the issue is made— > > > > > (a) solely to members; or > > > > > (b) solely to members and employees of the co-operative; > > > > but does not apply to the issue of debentures under section 108 (1), 128 (2) or 163 (2). > > > (2) Before issuing to a person debentures to which this section applies, a co-operative must— > > > > > (a) inform the person in writing that the person is entitled to receive a disclosure statement on request to the co-operative; and > > > > > (b) give the person a disclosure statement if the person requests it. > > > (3) The disclosure statement is a statement, approved by the Registrar, and containing the information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including— > > > > > (a) the purpose for which the money raised by the co-operative by the issue of debentures is to be used; and > > > > > (b) the rights and liabilities attaching to the debentures; and > > > > > (c) the financial position of the co-operative; and > > > > > (d) the interests of the directors of the co-operative in the issue of the debentures; and > > > > > (e) compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures; and > > > > > (f) other matters the Registrar directs. > > > (4) A draft disclosure statement must be submitted to the Registrar at least 28 days (or the shorter period the Registrar may allow in a particular case) before the issue of debentures. > > > (5) Section 25 (except subsections (1), (2) and (3)) applies to a disclosure statement under this section with any necessary modifications, and in particular as if a reference in that section to a formation meeting were a reference to the issue of debentures. > > > (6) The Registrar may, by designated instrument, exempt a co-operative or class of co-operatives from complying with this section. > > > (7) An exemption may be given unconditionally or subject to conditions.