Western Australian Current Acts Western Australian Current Acts (1) In this section
—
undertaking , of a co-operative, means all the
assets of the co-operative.
(2) A co-operative
must not do any of the following things except as approved by special
resolution by means of a special postal ballot —
(a)
sell, or lease as a going concern —
(i)
the undertaking of the co-operative; or
(ii)
a part of that undertaking that relates to its primary
activities and the value of which represents the percentage prescribed by the
regulations or more of the total value of the undertaking;
(b)
acquire from or dispose of to a director or employee of the co-operative, or a
relative, within the meaning of the Corporations Act, of a director or
employee of the co-operative or of the spouse (or de facto partner) of a
director or employee of the co-operative, property the value of which
represents the percentage prescribed by the regulations, or more, of the total
value of all the assets of the co-operative that relate to its primary
activities;
(c)
acquire an asset the value of which represents the percentage prescribed by
the regulations, or more, of the total value of the assets of the
co-operative, if the acquisition would result in the co-operative starting to
carry on an activity that is not one of its primary activities;
(d)
dispose of an asset, if the disposal would result —
(i)
in the co-operative ceasing to carry on an activity
referred to in subsection (3A); or
(ii)
in the ability of the co-operative to carry on an
activity referred to in subsection (3A) being substantially impaired.
Penalty for this subsection: a fine of $6 000.
(3A) Subsection (2)(d)
applies to an activity of a co-operative if —
(a) the
activity is a primary activity of the co-operative; and
(b)
under rules of the co-operative referred to in section 111(a) or regulations
made for the purposes of section 111(b), the use or support of the activity,
or the maintenance of a relationship or an arrangement with the co-operative
for carrying on the activity, can be sufficient to establish active membership
of the co-operative.
(3) If a co-operative
contravenes this section, each person who is a member of the board of the
co-operative is taken to have committed an offence, if the person —
(a) was
in a position to influence the conduct of the co-operative in relation to the
commission of the offence by it; and
(b) did
not use all due diligence to prevent the commission of the offence by it.
Penalty for this subsection: a fine of $6 000.
(4) The Registrar may,
by order published in the Gazette , exempt a co-operative from compliance with
a provision of this section and section 186 in relation to any matter to which
this section applies.
(5) An exemption may
be granted unconditionally or subject to conditions.
[Section 273 amended: No. 7 of 2016 s. 95 and
200.]