Powers of board in response to suspected contravention
365 Powers of board in response to suspected contravention
If the board of a co-operative is satisfied on reasonable grounds that a person has contravened section 361 in relation to the co-operative, the board may do either or both of the following—
refuse to register a share transfer involving the person;
suspend a stated right or entitlement a person has as a member of the co-operative or attaching to any shares of the co-operative in which the person has a relevant interest.
The board may ask a person who it suspects has a relevant interest in shares of the co-operative to give stated information to the board about the interest.
A failure by a person to comply with a request under subsection (2) is a reasonable ground for being satisfied the person has contravened section 361.
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