sec.338Disclosure statement

sec.338 Disclosure statement

This section applies to the issue of debentures of a co-operative if the issue is made— solely to members; or solely to members and employees of the co-operative; but does not apply to the issue of debentures under section 108 (1), 128 (2) or 163 (2). Before issuing to a person debentures to which this section applies, a co-operative must— inform the person in writing that the person is entitled to receive a disclosure statement on request to the co-operative; and give the person a disclosure statement if the person requests it. The disclosure statement is a statement, approved by the Registrar, and containing the information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including— the purpose for which the money raised by the co-operative by the issue of debentures is to be used; and the rights and liabilities attaching to the debentures; and the financial position of the co-operative; and the interests of the directors of the co-operative in the issue of the debentures; and compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures; and other matters the Registrar directs. A draft disclosure statement must be submitted to the Registrar at least 28 days (or the shorter period the Registrar may allow in a particular case) before the issue of debentures. Section 25 (except subsections (1) , (2) and (3) ) applies to a disclosure statement under this section with any necessary modifications, and in particular as if a reference in that section to a formation meeting were a reference to the issue of debentures. The Registrar may, by designated instrument, exempt a co-operative or class of co-operatives from complying with this section. An exemption may be given unconditionally or subject to conditions. (sec.338-ssec.1) This section applies to the issue of debentures of a co-operative if the issue is made— solely to members; or solely to members and employees of the co-operative; but does not apply to the issue of debentures under section 108 (1), 128 (2) or 163 (2). (sec.338-ssec.2) Before issuing to a person debentures to which this section applies, a co-operative must— inform the person in writing that the person is entitled to receive a disclosure statement on request to the co-operative; and give the person a disclosure statement if the person requests it. (sec.338-ssec.3) The disclosure statement is a statement, approved by the Registrar, and containing the information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including— the purpose for which the money raised by the co-operative by the issue of debentures is to be used; and the rights and liabilities attaching to the debentures; and the financial position of the co-operative; and the interests of the directors of the co-operative in the issue of the debentures; and compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures; and other matters the Registrar directs. (sec.338-ssec.4) A draft disclosure statement must be submitted to the Registrar at least 28 days (or the shorter period the Registrar may allow in a particular case) before the issue of debentures. (sec.338-ssec.5) Section 25 (except subsections (1) , (2) and (3) ) applies to a disclosure statement under this section with any necessary modifications, and in particular as if a reference in that section to a formation meeting were a reference to the issue of debentures. (sec.338-ssec.6) The Registrar may, by designated instrument, exempt a co-operative or class of co-operatives from complying with this section. (sec.338-ssec.7) An exemption may be given unconditionally or subject to conditions.