18Distributing co-operatives

18 Distributing co-operatives

18 Distributing co-operatives

(1) A distributing co-operative is a co-operative that is not prohibited from giving returns or distributions on surplus or share capital.

(2) A distributing co-operative must have share capital.

(3) A distributing co-operative must have a membership of—

(a) in the case of a co-operative group—2 or more co-operatives; or

(b) in the case of any other distributing co-operative—

(i) if a lesser number than 5 is approved by the Registrar—at least that number of active members; or

(ii) otherwise—5 or more active members.

(4) An approval under subsection (3) may be given in relation to a particular co-operative or class of co-operatives.