sec.357Distribution of surplus or reserves to members

sec.357 Distribution of surplus or reserves to members

A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co-operative by— distribution to members as a rebate in proportion to— the value of business done by each member with the co-operative; or profits earned by the co-operative on business done by each member with the co-operative; or the issue to members of bonus shares in proportion to— the value of business done by each member with the co-operative; or profits earned by the co-operative on business done by each member with the co-operative; or shares held by each member; or the issue to members of a limited dividend for shares held by each member. The amount of a rebate payable to a member under subsection (1) (a) may be applied— in payment for the issue to the member of bonus shares, with the consent of the member; or as a loan to the co-operative— with the consent of the member; or if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1) (a) to be applied as a loan to the co-operative. The amount of a dividend payable to a member under subsection (1) (c) may be applied— in payment for the issue to the member of bonus shares, with the consent of the member; or as a loan to the co-operative— with the consent of the member; or if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1) (c) to be applied as a loan to the co-operative. A loan to the co-operative authorised by the rules (as referred to in subsection (2) (b) (ii) or (3) (b) (ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National Regulations. In this section— limited dividend means a dividend that is not more than the amount prescribed by the National Regulations. (sec.357-ssec.1) A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co-operative by— distribution to members as a rebate in proportion to— the value of business done by each member with the co-operative; or profits earned by the co-operative on business done by each member with the co-operative; or the issue to members of bonus shares in proportion to— the value of business done by each member with the co-operative; or profits earned by the co-operative on business done by each member with the co-operative; or shares held by each member; or the issue to members of a limited dividend for shares held by each member. (sec.357-ssec.2) The amount of a rebate payable to a member under subsection (1) (a) may be applied— in payment for the issue to the member of bonus shares, with the consent of the member; or as a loan to the co-operative— with the consent of the member; or if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1) (a) to be applied as a loan to the co-operative. (sec.357-ssec.3) The amount of a dividend payable to a member under subsection (1) (c) may be applied— in payment for the issue to the member of bonus shares, with the consent of the member; or as a loan to the co-operative— with the consent of the member; or if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1) (c) to be applied as a loan to the co-operative. (sec.357-ssec.4) A loan to the co-operative authorised by the rules (as referred to in subsection (2) (b) (ii) or (3) (b) (ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National Regulations. (sec.357-ssec.5) In this section— limited dividend means a dividend that is not more than the amount prescribed by the National Regulations.