sec.25Provisions relating to and approval of formation disclosure statement

sec.25 Provisions relating to and approval of formation disclosure statement

This section applies to a draft formation disclosure statement for a co-operative required to be submitted to the Registrar under section 23 . 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— the estimated costs of formation; and the active membership provisions of the proposed co-operative; and the rights and liabilities attaching to shares in the proposed co-operative; and the capital required for the co-operative at the time of formation; and the projected income and expenditure of the co-operative for its first year of operation; and information about any contracts required to be entered into by the co-operative; and any other information that the Registrar directs to be included. The draft formation disclosure statement for a non-distributing co-operative must contain the information that the Registrar directs to be included. The Registrar may— approve the draft statement as submitted; or amend the draft, or require a specified amendment of the draft, and then approve the amended statement; or approve a different statement to that submitted; or refuse to approve the draft statement; or 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) . Approval may be given at any time before the formation meeting is held. Approval may be given with or without conditions. Subject to subsection (8) , the Registrar approves of a formation disclosure statement by giving written notice of the approval of the statement to the person who submitted the draft statement to the Registrar. The Registrar is taken to have approved the formation disclosure statement (as submitted to the Registrar) at the end of the period of 28 days after the day it was submitted to the Registrar, unless before the end of that period the Registrar gives written notice to the person who submitted the draft statement that the Registrar— has approved a different formation disclosure statement to that submitted; or is still considering the matter; or refuses to approve the formation disclosure statement. The Registrar must give the person who submitted the draft statement to the Registrar written notice of the reasons for acting under subsection (8) (a) or (c). Section 69 contains restrictions on advertising or publishing statements about an offer, or intended offer, of shares in a distributing co-operative unless a current formation disclosure statement relating to the shares is registered with or approved by the Registrar. (sec.25-ssec.1) This section applies to a draft formation disclosure statement for a co-operative required to be submitted to the Registrar under section 23 . (sec.25-ssec.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— the estimated costs of formation; and the active membership provisions of the proposed co-operative; and the rights and liabilities attaching to shares in the proposed co-operative; and the capital required for the co-operative at the time of formation; and the projected income and expenditure of the co-operative for its first year of operation; and information about any contracts required to be entered into by the co-operative; and any other information that the Registrar directs to be included. (sec.25-ssec.3) The draft formation disclosure statement for a non-distributing co-operative must contain the information that the Registrar directs to be included. (sec.25-ssec.4) The Registrar may— approve the draft statement as submitted; or amend the draft, or require a specified amendment of the draft, and then approve the amended statement; or approve a different statement to that submitted; or refuse to approve the draft statement; or 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) . (sec.25-ssec.5) Approval may be given at any time before the formation meeting is held. (sec.25-ssec.6) Approval may be given with or without conditions. (sec.25-ssec.7) Subject to subsection (8) , the Registrar approves of a formation disclosure statement by giving written notice of the approval of the statement to the person who submitted the draft statement to the Registrar. (sec.25-ssec.8) The Registrar is taken to have approved the formation disclosure statement (as submitted to the Registrar) at the end of the period of 28 days after the day it was submitted to the Registrar, unless before the end of that period the Registrar gives written notice to the person who submitted the draft statement that the Registrar— has approved a different formation disclosure statement to that submitted; or is still considering the matter; or refuses to approve the formation disclosure statement. (sec.25-ssec.9) The Registrar must give the person who submitted the draft statement to the Registrar written notice of the reasons for acting under subsection (8) (a) or (c).