345General nature of CCU

345 General nature of CCU

345 General nature of CCU

(1) A co-operative capital unit (in this Law referred to as a CCU) is an interest issued by a co-operative conferring an interest in the capital (but not the share capital) of the co-operative.

(2) A CCU—

(a) is personal property; and

(b) is transferable or transmissible as provided by this Law and the rules of the co-operative, subject to the terms of issue of the CCU; and

(c) is, subject to the rules of the co-operative, capable of devolution by will or by operation of law.

(3) Subject to subsection (2)—

(a) the laws applicable to ownership of and dealing with personal property apply to a CCU in the same way as they apply to other property; and

(b) equitable interests in respect of a CCU may be created, dealt with and enforced as in the case of other personal property.

(4) A transferor of a CCU remains the holder of the CCU until the transfer is registered and the name of the transferee is entered in the register of CCUs and their holders (referred to in section 212 (1) (e)) in respect of the CCU.

(5) Despite any rule of law or equity to the contrary, a condition subject to which a CCU is issued is not invalid merely because the CCU is, by the condition, made irredeemable or redeemable only on the happening of a contingency however remote or at the end of a period however long.