19Non-distributing co-operatives

19 Non-distributing co-operatives

19 Non-distributing co-operatives

(1) A non-distributing co-operative is a co-operative that is prohibited from giving returns or distributions on surplus or share capital to members, other than the nominal value of shares (if any) at winding up.

(2) A non-distributing co-operative may or may not have share capital.

(3) A non-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 non-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.