170Set-off of amounts repaid etc on forfeited shares

170 Set-off of amounts repaid etc on forfeited shares

(1) If a person has an entitlement because of section 169, the entitlement operates to end any liability of the co-operative:

(a) to repay to the person under section 163 any amount for the forfeited shares concerned; or

(b) for a deposit held by the co-operative, or debentures or CCUs allotted or issued to the person, under section 163 for the forfeited shares concerned (except a liability to pay interest that is payable but unpaid).

(2) If an amount has been repaid to a person under section 163 or 165, the amount repaid is to be set-off against any entitlement of the person under section 168 for the forfeited shares concerned.

(3) If the amount repaid cannot be set-off against the entitlement because the entitlement is not, or is only partly, an entitlement to money, the entitlement is lost unless the person pays to the co-operative the amount repaid to the person and does so within the period required under subsection (4).

(4) If the circumstances referred to in subsection (3) arise, the co-operative concerned must:

(a) give written notice of the matter by post to the person concerned at the person’s address last known to the co-operative, stating a period of not less than 28 days after the notice is given within which any amount repaid must be paid to the co-operative; and

(b) publish a general notice to that effect in a newspaper circulating generally in the district in which the registered office of the co-operative is situated.