60Approval of certain rule amendments

60 Approval of certain rule amendments

(1) This section applies to:

(a) an amendment of rules that is referred to in subsection (2); and

(b) an amendment of rules that are referred to in section 35 (3) relating to the conversion of a non-distributing co-operative to a distributing co-operative.

(2) The Registrar may, by designated instrument, specify for the purposes of this section classes of amendments that must not be made to the rules of a co-operative without the prior approval of the Registrar, and without limitation may do so by reference to classes or subclasses of matters referred to in Schedule 1.

(3) A proposed amendment to which this section applies must be approved by the Registrar before the resolution amending the rules is passed by a co-operative or the board of a co-operative.

(4) A draft of the proposed amendment must be submitted to the Registrar before:

(a) the notice of the proposed special resolution amending the rules is given to the members by the co-operative; or

(b) the resolution is passed by the board of the co-operative.

(5) The proposed amendment must:

(a) be in accordance with section 56; and

(b) be in a form that may reasonably be approved; and

(c) be accompanied by a statement stating the reasons for the amendment.

(6) The Registrar may:

(a) approve the amendment as submitted; or

(b) approve a different amendment to that submitted; or

(c) refuse to approve the amendment; or

(d) require the person submitting the draft amendment to give the Registrar any additional information the Registrar reasonably requires, and then act under paragraph (a), (b) or (c).

(7) Subject to subsection (8), the Registrar approves of the amendment by giving written notice of the approval of the amendment to the person who submitted the draft amendment to the Registrar.

(8) The Registrar is taken to have approved the proposed amendment (as submitted to the Registrar) at the end of the period of 28 days after it was submitted, unless before the end of that period the Registrar gives written notice to the person who submitted it that the Registrar:

(a) has approved a different amendment to that submitted; or

(c) refuses to approve the proposed amendment.

(9) The Registrar must give the person who submitted the draft amendment to the Registrar written notice of the reasons for acting under subsection (8) (a) or (c).