103Transfer of shares and other interests on death of member

103 Transfer of shares and other interests on death of member

103 Transfer of shares and other interests on death of member

(1) On the death of a member of a co-operative, the board must transfer the deceased member’s share or interest in the co-operative to—

(a) the personal representative of the deceased member; or

(b) one or more persons that the deceased’s personal representative specifies in an application for transfer made to the co-operative within 3 months after the death of the member.

(2) On the death of a member of a co-operative, the member’s share or interest in the co-operative cannot be transferred to a person other than the personal representative of the deceased member except with the consent of the board of the co-operative.

(3) The board—

(a) in the case of an application referred to in subsection (1) (b)—must give its consent under subsection (2) to the transfer of the deceased member’s share or interest in the co-operative, unless the board reasonably believes the only transferee or each transferee will not be an active member of the co-operative; or

(b) in any other case—may give its consent under subsection (2) only if the board reasonably believes the only transferee or each transferee will be an active member of the co-operative.

(4) The board must not give its consent under subsection (2) to the transfer of a share if, because of the transfer, the nominal value of the shares held by the transferee would be more than—

(a) 20% of the nominal value of the share capital of the co-operative; or

(b) if a lower percentage is specified in the rules of the co-operative—that lower percentage of the nominal value of the share capital of the co-operative.

(5) This section has effect subject to section 100.