35Conversion of co-operative

35 Conversion of co-operative

35 Conversion of co-operative

(1) A co-operative may, by amendment of its rules, convert from—

(a) a co-operative with share capital to a co-operative without share capital, or vice versa; or

(b) a distributing co-operative to a non-distributing co-operative, or vice versa.

(2) An amendment of the rules for the conversion of a co-operative with share capital to a co-operative without share capital cannot be passed until at least 2 weeks after a notice has been published in a newspaper circulating generally in the district in which the registered office of the co-operative is situated advising of the proposal to submit the proposed amendment to members of the co-operative.

(3) An amendment of the rules for the conversion of a non-distributing co-operative to a distributing co-operative does not have effect without the prior approval of the Registrar under section 60.

(4) An amendment of the rules for the conversion of a co-operative must be approved by special resolution passed by a special postal ballot.

(5) The Registrar may exempt—

(a) a co-operative from subsection (4) by designated instrument; or

(b) a class of co-operatives from subsection (4) by designated instrument.

(6) An exemption may be given unconditionally or subject to conditions.