Western Australian Current Acts Western Australian Current Acts (1) If the membership
of a member of a co-operative is cancelled under this Part, the co-operative
must —
(a)
within 12 months after the date of cancellation, repay to the former member an
amount (the repayable amount ) made up of the amount paid up to the stated
nominal value of the shares forfeited by the member at the time of
cancellation less any amount owed by the member to the co-operative at that
time under the rules of the co-operative or any contract or otherwise; or
(b) in
the case of a transferred co-operative the rules of which state how to
calculate the repayable amount owing to a former member at the time of
cancellation of membership, within 3 years after the date of cancellation,
repay to the former member an amount in accordance with those rules; or
(c)
within 12 months after the date of cancellation, apply the repayable amount
under subsection (2) if —
(i)
the board considers that repayment would adversely affect
the financial position of the co-operative; or
(ii)
the board and the former member agree.
(2) The repayable
amount may be applied in one of the following ways —
(a) if
the co-operative is a deposit-taking co-operative, the co-operative may apply
the amount as a deposit by the former member with the co-operative, subject to
the requirements of section 128 as to interest on the deposit;
(b) the
co-operative may issue debentures or CCUs to the former member in satisfaction
of the amount;
(c) the
co-operative may appropriate the amount as a donation to the co-operative, but
only if the former member consents in writing to the donation.
(3) If the balance
sheet of the co-operative last issued before the cancellation of a
member’s membership disclosed a loss or deficiency or a significant
change in the financial position or prospects of the co-operative is
subsequently reported prior to the loss or deficiency, the paid up value of
the member’s shares may, for the purposes of calculating the repayable
amount, be reduced as described in subsection (4).
(4) The paid up value
of the member’s shares may be reduced by an amount that bears to the
amount of the loss or deficiency so disclosed the same proportion as the
number of shares held by the member bore to the total number of shares held by
all members of the co-operative at the time of cancellation.
(5) If the former
member is subsequently readmitted to membership, any amount held by the
co-operative under this section must, if the member so requests, be applied
towards the cost of admission to membership, including any subscription for
share capital.
(6) Despite subsection
(2)(c), if —
(a) the
co-operative cannot, after taking all reasonable action, find the former
member; and
(b) the
payment due is less than the amount prescribed by the regulations, or if an
amount is not prescribed, $100,
the co-operative may
appropriate the payment as a donation to the co-operative.
[Section 127 amended: No. 7 of 2016 s. 198.]