s 216

Certain financial accommodation to officers prohibited

In force

(1)

An officer of a co‑operative who is not a director of the co‑operative must not obtain financial accommodation from the co‑operative other than —

(a)

with the approval of a majority of the directors; or

(b)

under a scheme about providing financial accommodation to officers that has been approved by a majority of the directors.

Penalty for this subsection: a fine of $24 000, or imprisonment for 2 years, or both.

(2)

For the purposes of this section, financial accommodation is taken to be obtained by an officer of a co‑operative if it is obtained by —

(a)

a proprietary company in which the officer is a shareholder or director; or

(b)

a trust of which the officer is a trustee or beneficiary; or

(c)

a trust of which a corporation is trustee if the officer is a director or other officer of the corporation.

(3)

A co‑operative must not give financial accommodation to an officer of the co‑operative if —

(a)

by giving the financial accommodation, the officer would contravene this section; and

(b)

the co‑operative knows or should reasonably know of the contravention.

Penalty for this subsection: a fine of $50 000.

[Section 216 amended: No. 7 of 2016 s. 67 and 200.]

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