354Issue of shares in substitution for redemption

354 Issue of shares in substitution for redemption (1) If a co-operative has redeemed or is about to redeem CCUs held by an active member of the co-operative, it may: (a) issue shares to the member up to the sum of the nominal value of the CCUs redeemed or to be redeemed, as if those CCUs had never been issued; or (b) pay up amounts unpaid on shares held by the member up to the sum of the nominal value of the CCUs redeemed or to be redeemed, as if those CCUs had never been issued. (2) This section applies only if the terms of issue of the CCUs provide for the conversion of CCUs held by an active member of the co- operative into shares of the co-operative. Division 3 Disposal of surplus from activities