sec.169Entitlements of former shareholders on mergers etc

sec.169 Entitlements of former shareholders on mergers etc

This section applies when a person’s shares in a co-operative ( the original co-operative ) are forfeited under this Part and within 2 years after the forfeiture— another co-operative ( the new co-operative ) is created because of a merger under Part 4.3 involving the original co-operative; or the engagements of the original co-operative are transferred to another co-operative ( the new co-operative ) under Part 4.3 . A person referred to in subsection (1) is, for the purposes of section 168 (and the further operation of this section), taken to have held shares in the new co-operative and as having had those shares in the new co-operative forfeited under this Part when the person’s shares in the original co-operative were forfeited. The extent of the forfeited shareholding in the new co-operative is decided as follows— if the entitlement of active members of the original co-operative in the circumstances concerned is solely an entitlement to be allotted shares in the new co-operative—the forfeited shareholding in the new co-operative is the shareholding to which the person would have been entitled had the person’s shares in the original co-operative not been forfeited; in any other case—the forfeited shareholding in the new co-operative is the shareholding that is the same in all respects as the forfeited shareholding in the original co-operative. The decision under subsection (3) (a) of the person’s shareholding in the new co-operative must be made— solely on the basis of the person’s shareholding in the original co-operative when the shares were forfeited or (in a further operation of this section to the person) when the person was first taken to have a forfeited shareholding in the original co-operative; and without regard to any additional shareholding in the original co-operative to which the person would have become entitled had the shares not been forfeited (whether because of any bonus share issue or otherwise). (sec.169-ssec.1) This section applies when a person’s shares in a co-operative ( the original co-operative ) are forfeited under this Part and within 2 years after the forfeiture— another co-operative ( the new co-operative ) is created because of a merger under Part 4.3 involving the original co-operative; or the engagements of the original co-operative are transferred to another co-operative ( the new co-operative ) under Part 4.3 . (sec.169-ssec.2) A person referred to in subsection (1) is, for the purposes of section 168 (and the further operation of this section), taken to have held shares in the new co-operative and as having had those shares in the new co-operative forfeited under this Part when the person’s shares in the original co-operative were forfeited. (sec.169-ssec.3) The extent of the forfeited shareholding in the new co-operative is decided as follows— if the entitlement of active members of the original co-operative in the circumstances concerned is solely an entitlement to be allotted shares in the new co-operative—the forfeited shareholding in the new co-operative is the shareholding to which the person would have been entitled had the person’s shares in the original co-operative not been forfeited; in any other case—the forfeited shareholding in the new co-operative is the shareholding that is the same in all respects as the forfeited shareholding in the original co-operative. (sec.169-ssec.4) The decision under subsection (3) (a) of the person’s shareholding in the new co-operative must be made— solely on the basis of the person’s shareholding in the original co-operative when the shares were forfeited or (in a further operation of this section to the person) when the person was first taken to have a forfeited shareholding in the original co-operative; and without regard to any additional shareholding in the original co-operative to which the person would have become entitled had the shares not been forfeited (whether because of any bonus share issue or otherwise).