Western Australian Current Acts

CO-OPERATIVES ACT 2009 - SECT 255

255 .         Compulsory loan by member to co-operative

        (1)         A co-operative may require its members to lend money, with or without security, to the co-operative, in accordance with a proposal approved by special resolution of the co-operative passed by a special postal ballot.

        (2)         The proposal cannot require a loan to be for a term of more than 7 years or another term prescribed by the regulations.

        (3)         The proposal must —

            (a)         be accompanied by a disclosure statement, approved by the Registrar, that explains the purpose for which the money raised by the co-operative under the proposal is to be used, and includes any other information that the Registrar directs; and

            (b)         show the total amount of the loan to be raised by the co-operative and the basis on which the money required to be lent by each member is to be calculated; and

            (c)         be accompanied by a statement informing the member that the member may inform the board by notice on or before the date specified in the statement, being a date before the passing of the special resolution by a special postal ballot, that the member resigns on the passing of the special resolution.

        (4)         If the proposal allows, the board of the co-operative may, under the terms of the proposal, deduct the money required to be lent by a member to the co-operative from money payable from the co-operative to the member for his or her dealings with the co-operative.

        (5)         A proposal to deduct money referred to in subsection (4) must, in addition to meeting the requirements of subsection (3), show —

            (a)         the basis on which the money is to be deducted; and

            (b)         the time and way of making the deductions.

        (6)         When approved the proposal is binding on —

            (a)         all members of the co-operative at the date of passing of the special resolution, other than a member who has given a notice of resignation in accordance with subsection (3)(c); and

            (b)         all persons who become members of the co-operative after that date and before the total amount of the loan to be raised under the proposal has been raised.

        (7)         Sections 16 (except subsection (3)) and 29 apply to the approval of a disclosure statement under this section with any necessary changes and in particular as if a reference in section 16 to a formation meeting were a reference to the special resolution.

        [Section 255 amended: No. 7 of 2016 s. 91.]