363Maximum permissible level of share interest

363 Maximum permissible level of share interest

(1) A person must not have a relevant interest in shares of a co-operative the nominal value of which is more than a maximum of 20% of the nominal value of the issued share capital of the co-operative.

(2) The Registrar may, by designated instrument, state a maximum greater than 20% as the maximum for subsection (1) for a particular co-operative or class of co-operatives.

Note. For example, a co-operative group may not have enough members to allow each member to comply with subsection (1).

(3) The maximum of 20% stated by subsection (1) may be increased for a particular person by special resolution of the co-operative concerned passed by a special postal ballot.

(4) A resolution under subsection (3) does not have effect unless it is approved by the Registrar.

(5) The Registrar’s approval of the resolution may be given subject to conditions.