19Transfer of shares (CNL ss100 & 101)

19 Transfer of shares (CNL ss100 & 101)

19 Transfer of shares (CNL ss100 & 101)

(1) The instrument of transfer of a share must be signed by or for the transferor and the transferee.

(2) The transferor is taken to remain the holder of the share until the name of the transferee is entered in the register of members.

(3) Shares must be transferred in the following form or another form approved by the board:

I, A.B. (the transferor) of .................... in the State/Territory of .................... in consideration of the sum of $..... paid to me by C.D. (the transferee), of .................... in the State/Territory of .................... transfer to the transferee the share (or shares) numbered ..... in the .................... (name of co-operative) to hold for the transferee, the transferee’s executors, administrators and assigns, subject to the several conditions on which I hold the same at the time of the execution.

And I, the transferee, agree to take the said share (or shares) subject to the conditions previously mentioned in this document.

Dated this .......... day of .................... 20......

Signed by ................................... transferor.

In the presence of .............................. witness.

Signed by ................................... transferee.

In the presence of .............................. witness.

(4) A share may not be sold or transferred except:

(a) with the consent of the board, and to a person who is qualified to be admitted to membership of the co-operative under rules 4 and 5; or

(b) as otherwise provided by these rules or the Law.

(5) The board may decline to register a transfer of shares to a person not qualified to be a member or of whom they do not approve. The board may also decline to register a transfer of shares on which the co-operative has a lien or charge. If the board refuses to register a transfer of shares it must send notice of the refusal to the transferee within 28 days after the day the board declined to register the transfer.

(6) The board of the co-operative must not consent to the sale or transfer of shares that would result in more than the nominal value of shares permitted under section 363 of the Law.

(7) The board may decline to recognise an instrument of transfer unless: