364Shares to be forfeited to remedy contravention

364 Shares to be forfeited to remedy contravention

364 Shares to be forfeited to remedy contravention

(1) If a person has a relevant interest in a share of a co-operative in contravention of this Division that is not remedied within 14 days of a notice of that contravention being issued by the board, the board of the co-operative must declare to be forfeited enough of the shares in which the person has a relevant interest to remedy the contravention.

(2) The shares to be forfeited are—

(a) the shares nominated by the person for the purpose; or

(b) in the absence of that nomination, the shares in which the person has had a relevant interest for the shortest time.

(3) A declaration of the board that shares are forfeited operates to forfeit the shares concerned.

(4) Sections 163, 164 and 165 apply to shares forfeited under this section as if the shares had been forfeited under Part 2.6.