(1) A co-operative may
impose a fine on a member for an infringement of the rules of the co-operative
if the rules of the co-operative so provide.
(2) A fine imposed
under subsection (1) cannot exceed the maximum fine fixed by the rules in
accordance with section 98.
(3) A fine cannot be
imposed unless —
(a)
notice of intention to impose the fine and the reason for it has been given to
the member; and
(b) the
member has been given a reasonable opportunity to appear before the board in
person (with or without witnesses) or to send to the board a written statement
to show cause why the fine should not be imposed.
(4) The co-operative
may set off the whole or any part of the fine against an amount payable to the
member for produce delivered by the member to the co-operative, but no part of
the fine is to be set off against any advance that, in accordance with the
rules of the co-operative, is payable to the member from the co-operative, for
produce so delivered.