Western Australian Current Acts Western Australian Current Acts (1) When a member
resigns from a co-operative or is expelled from a co-operative under its
rules, the co-operative must —
(a)
within 12 months after the date of resignation or expulsion, repay to the
former member an amount (the repayable amount ) made up of the amount paid up
to the stated nominal value of the shares held by the member at the
resignation or expulsion date, less any amount owed by the member to the
co-operative at the resignation or expulsion date under the rules of the
co-operative or any contract or otherwise; or
(b) in
the case of a transferred co-operative the rules of which state how to
calculate the repayable amount owing to a former member at the time of
resignation or expulsion, within 3 years after the date of resignation or
expulsion, repay to the former member an amount in accordance with those
rules; or
(c)
within 12 months after the date of resignation or expulsion, apply the
repayable amount under subsection (2) if —
(i)
the board considers repayment would adversely affect the
financial position of the co-operative; or
(ii)
the board and the former member agree.
(2) The repayable
amount may be applied in one of the following ways —
(a) the
co-operative may appropriate the amount as a donation to the co-operative, but
only if the former member consents in writing to the donation;
(b) if
the co-operative is a deposit taking co-operative, the co-operative may apply
the amount as a deposit by the former member with the co-operative, subject to
the requirements of section 128 as to interest on the deposit;
(c) the
co-operative may issue debentures or CCUs to the former member in satisfaction
of the amount.
(3) If the balance
sheet of the co-operative last issued before the resignation or expulsion of a
member of the co-operative disclosed a loss or deficiency or a significant
change in the financial position or prospects of the co-operative is
subsequently reported prior to the resignation or expulsion, the paid up value
of the member’s shares may, for the purposes of calculating the
repayable amount, be reduced as described in subsection (4).
(4) The paid up value
of the member’s shares may be reduced by an amount that bears to the
amount of the loss or deficiency so disclosed the same proportion as the
number of shares held by the member bore to the total number of shares held by
all members of the co-operative as at the date of resignation or expulsion of
the member.
(5) Shares for which
capital has been repaid under subsection (1)(a) or applied under subsection
(1)(c) must be cancelled.
[Section 73 amended: No. 7 of 2016 s. 198.]