16Capital and shares (CNL ss76–82)

16 Capital and shares (CNL ss76–82)

16 Capital and shares (CNL ss76–82)

(1) The capital of the co-operative must be raised by the issue of shares of nominal value of $..... each.

(2) A member must hold a minimum of .. shares in the co-operative and must not hold or have a relevant interest in more than 20% of the nominal value of issued share capital of the co-operative unless permitted to do so under section 363 of the Law.

(3) No share is to be allotted unless .. (insert “100%” OR “at least ..%”) of the nominal value of the share has been paid.

Note—

Shares may be required to be fully paid for them to be allotted or they may be partly paid provided the minimum paid up is 10%. The amount to be paid is a matter for the co-operative to determine in the light of its capital requirements. Section 78 of the Law requires there to be a minimum of 10% paid up before allotment. The remaining percentage of the share price can be paid either by predetermined subscription amounts or they may simply be subject to a call under rule 17.

(4) A share in the co-operative does not carry a vote.

(5) The right to vote in the co-operative is attached to membership and governed by section 228 of the Law.

Note—

Under section 82 of the Law, the co-operative is authorised to require members of a distributing co-operative to take up or subscribe for additional shares under a proposal approved by special resolution.