103Transfer of shares and other interests on death of member

103 Transfer of shares and other interests on death of member

(1) On the death of a member of a co-operative, the board must transfer the deceased member’s share or interest in the co-operative to:

(a) the personal representative of the deceased member; or

(b) one or more persons that the deceased’s personal representative specifies in an application for transfer made to the co-operative within 3 months after the death of the member.

(2) On the death of a member of a co-operative, the member’s share or interest in the co-operative cannot be transferred to a person other than the personal representative of the deceased member except with the consent of the board of the co-operative.

(3) The board:

(a) in the case of an application referred to in subsection (1) (b)—must give its consent under subsection (2) to the transfer of the deceased member’s share or interest in the co-operative, unless the board reasonably believes the only transferee or each transferee will not be an active member of the co-operative; or

(b) in any other case—may give its consent under subsection (2) only if the board reasonably believes the only transferee or each transferee will be an active member of the co-operative.

(4) The board must not give its consent under subsection (2) to the transfer of a share if, because of the transfer, the nominal value of the shares held by the transferee would be more than:

(a) 20% of the nominal value of the share capital of the co-operative; or

(b) if a lower percentage is specified in the rules of the co-operative—that lower percentage of the nominal value of the share capital of the co-operative.

(5) This section has effect subject to section 100.