sec.359Acquisition and disposal of assets

sec.359 Acquisition and disposal of assets

A co-operative must not do any of the following things except as approved by special resolution by a special postal ballot— sell or lease the undertaking of the co-operative as a going concern; sell or lease a part of the undertaking of the co-operative that relates to its primary activities and the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking; acquire from or dispose of to— a director or employee of the co-operative; or a relative (within the meaning of the Corporations Act ) of a director or employee of the co-operative or of the spouse or de facto partner of a director or employee of the co-operative; property the value of which represents a percentage prescribed by the National Regulations or more of the total book value of all the assets of the co-operative relating to its primary activities; acquire an asset the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking of the co-operative, if the acquisition would result in the co-operative commencing to carry on an activity that is not one of its primary activities; dispose of an asset, if the disposal would result— in the co-operative ceasing to carry on a primary activity of the co-operative; or in the ability of the co-operative to carry on a primary activity of the co-operative being substantially impaired. Maximum penalty—$6,000. If a co-operative contravenes this section, each person who is a member of the board of the co-operative is taken to have committed the offence, if the person— was in a position to influence the conduct of the co-operative in relation to the commission of the offence by it; and did not use all due diligence to prevent the commission of the offence by it. The Registrar may, by designated instrument, exempt a co-operative from compliance with a provision of this section and section 248 in relation to a matter to which this section applies. An exemption may be given unconditionally or subject to conditions. In this section— undertaking of a co-operative means all the assets of the co-operative. This section applies to non-distributing co-operatives as well as to distributing co-operatives. (sec.359-ssec.1) A co-operative must not do any of the following things except as approved by special resolution by a special postal ballot— sell or lease the undertaking of the co-operative as a going concern; sell or lease a part of the undertaking of the co-operative that relates to its primary activities and the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking; acquire from or dispose of to— a director or employee of the co-operative; or a relative (within the meaning of the Corporations Act ) of a director or employee of the co-operative or of the spouse or de facto partner of a director or employee of the co-operative; property the value of which represents a percentage prescribed by the National Regulations or more of the total book value of all the assets of the co-operative relating to its primary activities; acquire an asset the value of which represents a percentage prescribed by the National Regulations or more of the total book value of the undertaking of the co-operative, if the acquisition would result in the co-operative commencing to carry on an activity that is not one of its primary activities; dispose of an asset, if the disposal would result— in the co-operative ceasing to carry on a primary activity of the co-operative; or in the ability of the co-operative to carry on a primary activity of the co-operative being substantially impaired. Maximum penalty—$6,000. (sec.359-ssec.2) If a co-operative contravenes this section, each person who is a member of the board of the co-operative is taken to have committed the offence, if the person— was in a position to influence the conduct of the co-operative in relation to the commission of the offence by it; and did not use all due diligence to prevent the commission of the offence by it. (sec.359-ssec.3) The Registrar may, by designated instrument, exempt a co-operative from compliance with a provision of this section and section 248 in relation to a matter to which this section applies. (sec.359-ssec.4) An exemption may be given unconditionally or subject to conditions. (sec.359-ssec.5) In this section— undertaking of a co-operative means all the assets of the co-operative.