Western Australian Current Acts

CO-OPERATIVES ACT 2009 - SECT 65

65 .         Carrying on business with too few members

        (1)         A person who is a director of a co-operative commits an offence if the person knowingly allows the co-operative to continue to carry on business with fewer than the minimum number of members for more than 28 days after the number of members falls below the minimum number.

        Penalty for this subsection: a fine of $2 000.

        (2)         Each person who is found guilty of an offence under subsection (1) is also liable to satisfy all obligations of the co-operative incurred after the 28 days referred to in subsection (1), and may be sued without any other member being joined in the action.

        (3)         The minimum number of members allowed is —

            (a)         for a co-operative group, 2; or

            (b)         for any other co-operative, 5, or if a lesser number is approved by the Registrar, the approved number.

        (4)         The Registrar may, by written notice, extend and further extend in a particular case the period of 28 days referred to in subsection (1).

        (5)         An application for an extension must be made —

            (a)         in a form approved by the Registrar; and

            (b)         before the period to be extended ends.

        [Section 65 amended: No. 7 of 2016 s. 21 and 200.]