Co-operatives National Law (Queensland)

A distributing co-operative may issue shares at a premium.

A premium may be in the form of cash or other valuable consideration.

If a distributing co-operative issues shares for which it receives a premium, an amount equal to the total amount or value of the premiums on the shares must be transferred to a share premium account.

The share premium account is to be treated as paid-up share capital of the distributing co-operative and may be applied in one or more of the following ways—

in paying up unissued shares to be issued to members of the co-operative as fully paid bonus shares;

in paying up, in whole or in part, the balance unpaid on shares previously issued to members of the co-operative;

in the payment of dividends, if the dividends are satisfied by the issue of shares to members of the co-operative;

in writing off the preliminary expenses of the co-operative;

in providing for the premium payable on redemption of shares, debentures or CCUs.