Non-distributing co-operatives
19 Non-distributing co-operatives
(1) A non-distributing co-operative is a co-operative that is prohibited from giving returns or distributions on surplus or share capital to members, other than the nominal value of shares (if any) at winding up.
(2) A non-distributing co-operative may or may not have share capital.
A non-distributing co-operative must have a membership of:
(a) in the case of a co-operative group – 2 or more co-operatives; or
in the case of any other non-distributing co-operative:
(i) if a lesser number than 5 is approved by the Registrar – at least that number of active members; or
otherwise – 5 or more active members.
(4) An approval under subsection (3) may be given in relation to a particular co-operative or class of co-operatives.
This Act’s bill:Explanatory statement
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