sec.353Capital redemption reserve

sec.353 Capital redemption reserve

This section applies if CCUs are redeemed out of profits. Out of profits there is to be transferred to a reserve called the capital redemption reserve a sum equal to the nominal amount of the CCUs redeemed. Subject to subsection (5) , the provisions of this Law relating to the reduction of share capital of a co-operative apply as if the capital redemption reserve were paid up share capital of the co-operative. Subject to subsection (5) , the capital redemption reserve may be applied in paying up unissued shares of the co-operative to be issued to members of the co-operative as fully paid bonus shares. Subsections (3) and (4) do not apply to a non-distributing co-operative. Section 448 provides that, on a winding up of a non-distributing co-operative, the surplus property of the co-operative must be distributed as required by the rules of the co-operative. (sec.353-ssec.1) This section applies if CCUs are redeemed out of profits. (sec.353-ssec.2) Out of profits there is to be transferred to a reserve called the capital redemption reserve a sum equal to the nominal amount of the CCUs redeemed. (sec.353-ssec.3) Subject to subsection (5) , the provisions of this Law relating to the reduction of share capital of a co-operative apply as if the capital redemption reserve were paid up share capital of the co-operative. (sec.353-ssec.4) Subject to subsection (5) , the capital redemption reserve may be applied in paying up unissued shares of the co-operative to be issued to members of the co-operative as fully paid bonus shares. (sec.353-ssec.5) Subsections (3) and (4) do not apply to a non-distributing co-operative. Section 448 provides that, on a winding up of a non-distributing co-operative, the surplus property of the co-operative must be distributed as required by the rules of the co-operative.