(1) A co-operative may
by ordinary resolution remove a director from office despite anything in
—
(a) the
rules of the co-operative; or
(b) an
agreement between the co-operative and the director; or
(c) an
agreement between any or all members of the co-operative and the director.
(2) Notice of
intention to move the resolution must be given to the co-operative at least 2
months before the meeting is to be held.
(3) However, subject
to subsection (4), if the co-operative calls a meeting after the notice of
intention is given under subsection (2), the meeting may pass the resolution
even though the meeting is held less than 2 months after the notice of
intention is given.
(4) At least 21 days
notice must be given of a meeting of the members of the co-operative at which
a resolution will be moved —
(a) to
remove a director from office; or
(b) to
appoint a director in place of a director removed from office.
(5) The co-operative
must give the director a copy of the notice as soon as practicable after it is
received.
Penalty for this subsection: a fine of $500.
(6) The director is
entitled to put his or her case to members by —
(a)
giving the co-operative a written statement for circulation to members (see
subsections (7) and (8)); and
(b)
speaking to the motion at the meeting.
(7) The co-operative
must circulate the written statement to members by —
(a)
sending a copy to everyone to whom notice of the meeting is sent if there is
time to do so; or
(b) if
there is not time to comply with paragraph (a) — having the statement
distributed to members attending the meeting and read out at the meeting
before the resolution is voted on.
Penalty for this subsection: a fine of $500.
(8) The
director’s statement does not have to be circulated to members if it is
more than 1 000 words long or defamatory.
(9) If a person is
appointed to replace a director removed under this section, the time at which
—
(a) the
replacement director; or
(b) any
other director,
is to retire is to be
worked out as if the replacement director had become director on the day on
which the replaced director was last appointed a director.
(10) Despite The
Criminal Code section 23B(2), it is immaterial for the purposes of subsections
(5) and (7) that any event occurred by accident.
[Section 206A inserted: No. 7 of 2016 s. 60.]
[Heading inserted: No. 7 of 2016 s. 61.]