Co-operatives National Law (Queensland)

A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co-operative by—

distribution to members as a rebate in proportion to—

the value of business done by each member with the co-operative; or

profits earned by the co-operative on business done by each member with the co-operative; or

the issue to members of bonus shares in proportion to—

the value of business done by each member with the co-operative; or

profits earned by the co-operative on business done by each member with the co-operative; or

shares held by each member; or

the issue to members of a limited dividend for shares held by each member.

The amount of a rebate payable to a member under subsection (1) (a) may be applied—

in payment for the issue to the member of bonus shares, with the consent of the member; or

as a loan to the co-operative—

with the consent of the member; or

if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1) (a) to be applied as a loan to the co-operative.

The amount of a dividend payable to a member under subsection (1) (c) may be applied—

in payment for the issue to the member of bonus shares, with the consent of the member; or

as a loan to the co-operative—

with the consent of the member; or

if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1) (c) to be applied as a loan to the co-operative.

A loan to the co-operative authorised by the rules (as referred to in subsection (2) (b) (ii) or (3) (b) (ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National Regulations.

In this section—