Co-operatives National Law Application Act 2013
82Members may be required to take up additional shares
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82 Members may be required to take up additional shares
(1) The board of a distributing co-operative may require a member to take up or subscribe for additional shares under a proposal approved by a special resolution of the co-operative passed by a special postal ballot.
(2) The board of a distributing co-operative may deduct amounts in payment for additional shares from money payable to members for dealings with the co-operative, under a proposal approved by a special resolution of the co-operative passed by a special postal ballot.
(3) A proposal to require a member to take up or subscribe for additional shares must:
(a) be accompanied by a disclosure statement, registered by the Registrar, that explains the purpose for which the funds raised by the issue of the additional shares are to be used; and
(b) clearly show the total number of additional shares to be issued and the basis on which the shares are to be apportioned among members; and
(c) be accompanied by a statement informing the member that the member may inform the board by notice on or before the date stated in the statement (being a date before the passing of the special resolution) that the member resigns on the passing of the special resolution.
(4) A proposal to deduct amounts in payment for additional shares from amounts payable to members for their dealings with the distributing co-operative must clearly show:
(a) the basis on which the deductions are to be made; and
(b) the time and way of making those deductions.
(5) A proposal approved under this section is binding on:
(a) all members of the distributing co-operative at the date of the passing of the special resolution, other than a member who has given a notice of resignation under subsection (3) (c); and
(b) all persons who become members of the distributing co-operative after that date and before the total number of shares to be issued under the proposal has been issued.
(6) The requirements in respect of a proposal to take up additional shares under subsection (3) do not apply to the issue of bonus shares under section 80 (4) (a), 83 or 357.