Western Australian Current Acts Western Australian Current Acts (1) If a co-operative
repurchases a share of a member, the co-operative may instead of paying the
purchase price to the member —
(a) in
the case of a deposit-taking co-operative, apply the amount as an interest
bearing deposit by the member with the co-operative; or
(b)
allot or issue debentures or CCUs of the co-operative to the member in
satisfaction of the amount.
(2) Subsection (1)
applies only if —
(a) the
board considers that payment of the repurchase price would adversely affect
the financial position of the co-operative; or
(b) the
board and the member so agree.
(3) The deposit,
debenture or CCU bears interest during any period —
(a) in
the case of a co-operative with share capital —
(i)
at the rate (or, if there is more than one rate, at the
higher or highest rate) of dividend payable for that period on the share
capital of the co-operative; or
(ii)
if the rate of dividend payable for that period has not
been decided, at the rate (or the higher or highest rate) payable for the
immediately preceding period for which a rate has been decided; or
(iii)
if a rate of dividend has never been decided for the
share capital of the co-operative, at the rate that the board of the
co-operative considers reasonable;
or
(b) in
the case of a co-operative without share capital, at the rate that the board
of the co-operative considers reasonable; or
(c) if
the rules provide for a rate to be payable that is higher than the rate
applicable under paragraph (a) or (b), at the higher rate.
(4) The deposit,
debenture or CCU must be repaid to the member or redeemed, as the case may be,
as soon as repayment or redemption would not, in the opinion of the board,
adversely affect the financial position of the co-operative.
(5) The deposit,
debenture or CCU must in any case be repaid or redeemed within 10 years (or
within any shorter period that the rules of the co-operative require) after
the repurchase of the shares concerned.
[Section 164 amended: No. 7 of 2016 s. 198.]