168Former shareholders to be taken to be shareholders for certain purposes

168 Former shareholders to be taken to be shareholders for certain purposes

168 Former shareholders to be taken to be shareholders for certain purposes

(1) Even though a person’s shares in a co-operative have been forfeited under this Part, the person is to be taken to be the holder of shares in the co-operative (the same in all respects as those that were forfeited) for the following purposes—

(a) the entitlement of a shareholder in relation to the purchase of shares in the co-operative under an offer described in section 373 (1) (a), (b) or (c) or the purchase of all the shares in the co-operative, if the offer or purchase occurs within 2 years after the person’s shares were forfeited;

(b) the entitlement of a shareholder when the co-operative becomes registered as a company if the relevant special resolution under section 404 is passed within 2 years after the person’s shares were forfeited;

(c) the entitlement of a shareholder to a distribution of surplus in a winding up of the co-operative that starts within 2 years after the person’s shares were forfeited.

(2) Subsection (1) (a) does not apply to—

(a) an offer described in section 373 (1) (a) or (c) that is made by another co-operative; or

(b) the purchase of all the shares in the co-operative by another co-operative.

(3) Subsection (1) (c) does not apply if the winding up is for a merger under Part 4.3.

(4) The entitlement under subsection (1) (a) of a person whose shares have been forfeited does not include an entitlement to vote on any matter.

(5) This section does not apply to a forfeited shareholding in a co-operative if section 169 operates so as to require the forfeited shareholding to be regarded as a forfeited shareholding in another co-operative.