Australian Capital Territory Repealed Acts

This legislation has been repealed.

CO-OPERATIVE SOCIETIES ACT 1939 (REPEALED) NO 9 - SECT 38AA

    (1)     The registrar may, with the approval of the Minister—

        (a)     direct a society to transfer its engagements to a financial institution approved by the registrar that has undertaken to fulfil those engagements; and

        (b)     require the society, within a specified period, to enter into an agreement approved by the registrar to give effect to the direction.

    (2)     The registrar shall not give a direction under subsection (1) unless the registrar has reasonable grounds for believing, and certifies, that:

        (a)     the number of members of the society is reduced to less than 7; or

        (b)     the society—

              (i)     has not begun business within 6 months of registration; or

              (ii)     has not carried on any business for a period of more than 6 months; or

        (c)     the society has, after notice by the registrar of any contravention of this Act or its rules—

              (i)     failed, within the time specified in the notice, to remedy the contravention; or

              (ii)     committed any further contravention of a kind specified in the notice; or

        (d)     there are, and have been for 1 month immediately before the date of the certificate, insufficient directors of the society to constitute a quorum as provided by the rules of the society; or

        (e)     as a result of an inquiry under section 7 into the affairs of the society, it is in the interests of its members, depositors or creditors that the society should transfer its engagements; or

        (f)     the transfer has been recommended by an administrator of the society; or

        (g)     in the interests of members, depositors or creditors of the society, it is expedient for the society to transfer its engagements.

    (3)     If a society fails to comply with a direction referred to in subsection (1) (a), the registrar may notify the society that he or she has elected to treat the certificate given under subsection (2) in relation to the society as—

        (a)     a certificate given under section 58B (2); or

        (b)     a certificate given under section 59 (3).

    (4)     If the registrar gives notice of election to a society under subsection (3), this Act applies in relation to the society, from and including the day when the notice was given, as if the certificate specified in the notice had been duly given by the registrar.

    (5)     The registrar may, with the approval of the Minister, revoke a direction referred to in subsection (1) (a) in relation to a society at any time before the society has entered into an agreement under subsection (1) (b).

    (6)     Notwithstanding section 38 (1) or the rules of a society, a society may, by resolution of the board, accept a transfer of engagements under this section.

    (7)     Section 19 applies mutatis mutandis to a transfer of engagements under this section by a society to a financial institution and for that purpose—

        (a)     a reference to amalgamation is a reference to transfer of engagements; and

        (b)     a reference to property is a reference to the engagements transferred; and

        (c)     a reference to the amalgamated society is a reference to the institution to which the engagements are transferred; and

        (d)     a reference to societies that have amalgamated is a reference to the bodies that are parties to the transfer of engagements; and

        (e)     a reference to the notification under the Legislation Act 2001 of a notice about an incorporation and to the date of notification is a reference to the notification under the Legislation Act 2001 of a notice about the transfer of engagements (the transfer notification ) and to the date stated in the transfer notification as the day the transfer takes effect.

    (8)     If the engagements of a society are transferred to another society ( the transferee society ), notwithstanding anything contained in this Act or the rules of the transferee society, the transferee society may, in conducting such of its affairs as relate to the transfer of engagements—

        (a)     raise money or obtain other financial accommodation; or

        (b)     receive money on deposit;

in the amounts that the transferee society, with the approval of the registrar, determines.

    (9)     On the transfer of the engagements of a society under this section, the registrar may cancel its registration.

    (10)     Before cancelling the registration of a society, the registrar shall give written notice of the registrar's intention to do so to the institution to which the engagements are transferred.

    (11)     An officer of a society to which a direction has been given or requirement made under subsection (1) shall not—

        (a)     fail to take all reasonable steps to secure compliance by the society with that direction or requirement; or

        (b)     by a wilful act or omission, cause a failure by the society to comply with that direction or requirement.

Maximum penalty: 50 penalty units, imprisonment for 6 months or both.

    (12)     If the engagements of a society are transferred to another society under this section, the members of that other society shall be—

        (a)     the persons who immediately before the transfer took effect were members of the societies; and

        (b)     any other persons who are admitted after the transfer to membership of that society in accordance with its rules.

    (13)     In this section:

"engagements", in relation to a society, includes the property of the society.

"financial institution" means—

        (a)     a building society; or

        (b)     a credit union; or

        (c)     a bank within the meaning of the Banking Act 1959 (Cwlth).