221Exception to requirement for using “Limited” in name

221 Exception to requirement for using “Limited” in name

221 Exception to requirement for using “Limited” in name

(1) The Registrar may, by designated instrument, approve of the omission of the word “Limited” or the abbreviation “Ltd” from the name of a co-operative, if its rules—

(a) prohibit the co-operative making distributions to its members and paying fees to its directors; and

(b) require the directors to approve all other payments the co-operative makes to directors.

(2) The co-operative must notify the Registrar as soon as practicable if any of those requirements or prohibitions in its rules are not complied with or if its rules are modified to remove any of those requirements or prohibitions.

Maximum penalty—$2,000.

(3) An approval may be granted subject to conditions and the conditions to which an approval is subject may be varied from time to time by the Registrar by notice in writing to the co-operative.

(4) Any conditions to which the Registrar’s approval is subject are binding on the co-operative and must, if the Registrar so directs, be inserted in the rules of the co-operative.

Note—

See section 62 (1), which provides that rules may be amended by resolution passed by the board if the amendment does no more than give effect to a requirement, direction, restriction or prohibition imposed or given under the authority of this Law.

(5) The Registrar may at any time by notice in writing to the co-operative revoke an approval under this section but only after giving the co-operative an opportunity to make submissions to the Registrar on the matter.

(6) An approval under this section operates to exempt the co-operative from the requirement that the word “Limited” or the abbreviation “Ltd” form part of its name.