338Disclosure statement

338 Disclosure statement (1) This section applies to the issue of debentures of a co-operative if the issue is made: (a) solely to members; or (b) solely to members and employees of the co-operative; but does not apply to the issue of debentures under section 108(1), 128(2) or 163(2). (2) Before issuing to a person debentures to which this section applies, a co-operative must: (a) inform the person in writing that the person is entitled to receive a disclosure statement on request to the co-operative; and (b) give the person a disclosure statement if the person requests it. (3) The disclosure statement is a statement, approved by the Registrar, and containing the information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including: (a) the purpose for which the money raised by the co-operative by the issue of debentures is to be used; and

Co-operatives (National Uniform Legislation) Act 2015 217 (b) the rights and liabilities attaching to the debentures; and (c) the financial position of the co-operative; and (d) the interests of the directors of the co-operative in the issue of the debentures; and (e) compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures; and (f) other matters the Registrar directs. (4) A draft disclosure statement must be submitted to the Registrar at least 28 days (or the shorter period the Registrar may allow in a particular case) before the issue of debentures. (5) Section 25 (except subsections (1), (2) and (3)) applies to a modifications, and in particular as if a reference in that section to a formation meeting were a reference to the issue of debentures. (6) The Registrar may, by designated instrument, exempt a co-operative or class of co-operatives from complying with this (7) An exemption may be given unconditionally or subject to conditions.