337Application of Corporations Act—issues of debentures

337 Application of Corporations Act—issues of debentures

(1) The debentures of a co-operative are declared to be applied Corporations legislation matters for the purposes of the Corporations application legislation of this jurisdiction in relation to Part 1.2A, Chapters 2L, 6CA and 6D, and Part 7.10 of the Corporations Act, subject to the following modifications:

(a) sections 111AS and 283I of the Corporations Act are taken to be omitted;

(b) the modifications referred to in section 13 (3) of this Law so far as they are relevant.

(2) However, the provisions of the Corporations Act applying to debentures of a co-operative by this section do not apply to:

(a) a loan to which section 343 applies; or

(b) an issue of debentures of a co-operative that is made:

(i) solely to members of the co-operative; or

(ii) solely to members and employees of the co-operative; or

(iii) to a person who on becoming an inactive member of the co-operative has had his or her share capital converted to debt.

(3) The following provisions of the Corporations Act as applying under this section are civil penalty provisions under this Law (see section 554) and are not civil penalty provisions under that Act:

(a) section 674 (2) and (2A);

(b) section 675 (2) and (2A);

(c) section 1041A;

(d) section 1041B (1);

(e) section 1041C (1);

(f) section 1041D;

(g) section 1043A (1) and (2).

(4) Words used in subsection (2) that are not defined in this Law have the same meanings as they have in the Corporations Act.