25Provisions relating to and approval of formation disclosure statement

25 Provisions relating to and approval of formation disclosure statement

25 Provisions relating to and approval of formation disclosure statement

(1) This section applies to a draft formation disclosure statement for a co-operative required to be submitted to the Registrar under section 23.

(2) The draft formation disclosure statement for a distributing co-operative must contain the information necessary to ensure prospective members are adequately informed of the nature and extent of a person’s financial involvement or liability as a member of the co-operative including so far as applicable—

(a) the estimated costs of formation; and

(b) the active membership provisions of the proposed co-operative; and

(c) the rights and liabilities attaching to shares in the proposed co-operative; and

(d) the capital required for the co-operative at the time of formation; and

(e) the projected income and expenditure of the co-operative for its first year of operation; and

(f) information about any contracts required to be entered into by the co-operative; and

(g) any other information that the Registrar directs to be included.

(3) The draft formation disclosure statement for a non-distributing co-operative must contain the information that the Registrar directs to be included.

(4) The Registrar may—

(a) approve the draft statement as submitted; or

(b) amend the draft, or require a specified amendment of the draft, and then approve the amended statement; or

(c) approve a different statement to that submitted; or

(d) refuse to approve the draft statement; or

(e) require the person submitting the draft statement to give the Registrar any additional information the Registrar reasonably requires, and then act under paragraph (a), (b), (c) or (d).

(5) Approval may be given at any time before the formation meeting is held.

(6) Approval may be given with or without conditions.