Australian Capital Territory Repealed Acts

This legislation has been repealed.

CO-OPERATIVE SOCIETIES ACT 1939 (REPEALED) NO 9 - SECT 22A

    (1)     A society shall, at the end of each financial year of the society, subject to subsection (3), transfer to a reserve fund, out of the surplus arising in that financial year from the business of the society, the amount required to be transferred under this section.

Maximum penalty: 10 penalty units.

    (2)     The amount required to be transferred to a reserve fund by a society in relation to a financial year of the society is—

        (a)     an amount that is not less than—

              (i)     if the society does not have a reserve fund—the required amount for that financial year; or

              (ii)     if the society has a reserve fund but the fund is less than the required reserve amount for that financial year—

    (A)     the required amount for that financial year; or

    (B)     the amount necessary to increase the reserve fund to the required reserve amount for that financial year;

whichever is the lesser; or

        (b)     subject to subsection (5), an amount that is not less than the amount that would result in the proportion that the reserve fund for that financial year bears to the withdrawable funds of the society at the end of that financial year being not less than the proportion that the reserve fund in relation to the immediately previous financial year had to the withdrawable funds of the society at the end of the immediately previous financial year;

whichever is the greater.

    (3)     Notwithstanding subsection (1), if a society is unable to comply with that subsection—

        (a)     the society shall forthwith notify the registrar of the reasons for its inability so to comply; and

        (b)     the registrar shall, as soon as possible after being so notified, by written notice given to the society, direct that the transfer required by subsection (1) be made by the society—

              (i)     from the funds of the society specified in the notice; and

              (ii)     within the period specified in the notice, being a period of not less than 7 days from the date the notice is given to the society.

    (4)     A society shall comply with a direction of the registrar given under subsection (3).

Maximum penalty: 50 penalty units.

    (5)     Nothing in this section requires a society to transfer to a reserve fund at the end of a financial year of the society an amount that would result in the reserve fund exceeding the required reserve amount for that financial year.

    (6)     Money transferred to a reserve fund of a society under this section shall not be distributed among the members of the society except in the event of the winding-up of the society.

    (7)     Money transferred to a reserve fund of a society under this section may at any time be applied for any purpose for which the capital of the society may be applied.

    (8)     It is a defence to a prosecution for an offence against subsection (1) if the society proves—

        (a)     that it has notified the registrar in accordance with subsection (3) (a); and

        (b)     that it has not received a notice under subsection (3) (b) or, if it has received a notice under that paragraph, that the period specified in the notice has not ended.

    (9)     In this section:

"required amount", in relation to a financial year of a society, means an amount equal to—

        (a)     0.3% of the withdrawable funds of the society at the beginning of that financial year; or

        (b)     0.3% of the withdrawable funds of the society at the end of that financial year;

whichever is the lesser.

"required reserve amount", in relation to a financial year of a society, means an amount equal to 2.5% of the withdrawable funds of the society at the end of that financial year.