119Carrying on business with too few members

119 Carrying on business with too few members

(1) A person who is a director of a co-operative must not knowingly allow the co-operative to continue to carry on business with fewer than the minimum number of members allowed (under subsection (3)) for more than 28 days after the number of members falls below that minimum number.

(2) Each person who is found guilty of an offence under subsection (1) is also liable to satisfy all obligations of the co-operative incurred after the 28 days referred to in subsection (1), and may be sued without any other member being joined in the action.

(3) The minimum number of members allowed is:

(a) in the case of a co-operative group—2 co-operatives; or

(b) in the case of any other co-operative:

(i) if a lesser number than 5 is approved by the Registrar—that number of active members; or

(ii) otherwise—5 active members.

Note. See section 20 for composite approvals.

(4) The Registrar may, by written notice, extend and further extend in a particular case the period of 28 days referred to in subsection (1).

(5) An application for an extension must be made in the approved form before the period to be extended ends.

Division 2 Rights and liabilities of members