359Acquisition and disposal of assets

#### 359 Acquisition and disposal of assets 359 Acquisition and disposal of assets > > (1) A co-operative must not do any of the following things except as approved by special resolution by a special postal ballot— > > > > > (a) sell or lease the undertaking of the co-operative as a going concern; > > > > > (b) sell or lease a part of the undertaking of the co-operative that relates to its primary activities and the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking; > > > > > (c) acquire from or dispose of to— > > > > > > > (i) a director or employee of the co-operative; or > > > > > > > (ii) a relative (within the meaning of the Corporations Act) of a director or employee of the co-operative or of the spouse or de facto partner of a director or employee of the co-operative; > > > > > > property the value of which represents a percentage prescribed by the National Regulations or more of the total book value of all the assets of the co-operative relating to its primary activities; > > > > > (d) acquire an asset the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking of the co-operative, if the acquisition would result in the co-operative commencing to carry on an activity that is not one of its primary activities; > > > > > (e) dispose of an asset, if the disposal would result— > > > > > > > (i) in the co-operative ceasing to carry on a primary activity of the co-operative; or > > > > > > > (ii) in the ability of the co-operative to carry on a primary activity of the co-operative being substantially impaired. > > > > Maximum penalty—$6,000. > > > (2) If a co-operative contravenes this section, each person who is a member of the board of the co-operative is taken to have committed the offence, if the person— > > > > > (a) was in a position to influence the conduct of the co-operative in relation to the commission of the offence by it; and > > > > > (b) did not use all due diligence to prevent the commission of the offence by it. > > > (3) The Registrar may, by designated instrument, exempt a co-operative from compliance with a provision of this section and section 248 in relation to a matter to which this section applies. > > > (4) An exemption may be given unconditionally or subject to conditions. > > > (5) In this section— > > > > undertaking of a co-operative means all the assets of the co-operative. > > Note— > > This section applies to non-distributing co-operatives as well as to distributing co-operatives.