sec.364Shares to be forfeited to remedy contravention

sec.364 Shares to be forfeited to remedy contravention

If a person has a relevant interest in a share of a co-operative in contravention of this Division that is not remedied within 14 days of a notice of that contravention being issued by the board, the board of the co-operative must declare to be forfeited enough of the shares in which the person has a relevant interest to remedy the contravention. The shares to be forfeited are— the shares nominated by the person for the purpose; or in the absence of that nomination, the shares in which the person has had a relevant interest for the shortest time. A declaration of the board that shares are forfeited operates to forfeit the shares concerned. Sections 163 , 164 and 165 apply to shares forfeited under this section as if the shares had been forfeited under Part 2.6 . (sec.364-ssec.1) If a person has a relevant interest in a share of a co-operative in contravention of this Division that is not remedied within 14 days of a notice of that contravention being issued by the board, the board of the co-operative must declare to be forfeited enough of the shares in which the person has a relevant interest to remedy the contravention. (sec.364-ssec.2) The shares to be forfeited are— the shares nominated by the person for the purpose; or in the absence of that nomination, the shares in which the person has had a relevant interest for the shortest time. (sec.364-ssec.3) A declaration of the board that shares are forfeited operates to forfeit the shares concerned. (sec.364-ssec.4) Sections 163 , 164 and 165 apply to shares forfeited under this section as if the shares had been forfeited under Part 2.6 .

• (a) the shares nominated by the person for the purpose; or
• (b) in the absence of that nomination, the shares in which the person has had a relevant interest for the shortest time.