357Distribution of surplus or reserves to members

357 Distribution of surplus or reserves to members (1) A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co-operative by: (a) distribution to members as a rebate in proportion to: (i) the value of business done by each member with the (ii) profits earned by the co-operative on business done by each member with the co-operative; or (b) the issue to members of bonus shares in proportion to: (i) the value of business done by each member with the (ii) profits earned by the co-operative on business done by each member with the co-operative; or (iii) shares held by each member; or (c) the issue to members of a limited dividend for shares held by each member. (2) The amount of a rebate payable to a member under subsection (1)(a) may be applied: (a) in payment for the issue to the member of bonus shares, with the consent of the member; or (b) as a loan to the co-operative: (i) with the consent of the member; or (ii) if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1)(a) to be applied as a loan to the co-operative. (3) The amount of a dividend payable to a member under subsection (1)(c) may be applied: (a) in payment for the issue to the member of bonus shares, with the consent of the member; or (b) as a loan to the co-operative: (i) with the consent of the member; or

Co-operatives (National Uniform Legislation) Act 2015 227 (ii) if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1)(c) to be applied as a loan to the co-operative. (4) A loan to the co-operative authorised by the rules (as referred to in subsection (2)(b)(ii) or (3)(b)(ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National limited dividend means a dividend that is not more than the amount prescribed by the National Regulations.