Co-operatives Act 2009

This section applies to the issue of debentures of a co‑operative if the issue is made —

solely to members; or

solely to members and employees of the co‑operative.

This section does not apply to the issue of debentures under section 73(2), 127(2) or 164(1).

Before issuing to a person debentures to which this section applies, a co‑operative must —

inform the person in writing that the person is entitled to receive a disclosure statement on request to the co‑operative; and

give the person a disclosure statement if the person requests it.

For the purposes of subsection (3A), the disclosure statement is a statement, approved by the Registrar, and containing the information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co‑operative, including —

the purpose for which the money raised by the co‑operative by the issue of debentures is to be used; and

the rights and liabilities attaching to the debentures; and

the financial position of the co‑operative; and

the interests of the directors of the co‑operative in the issue of the debentures; and

compensation or consideration to be paid to officers or members of the co‑operative in connection with the issue of debentures; and

other matters that the Registrar directs.

Sections 16 (except subsection (3)) and 29 apply to the approval of a disclosure statement under this section with any necessary changes and, in particular, as if a reference in section 16 to a formation meeting were a reference to the issue of debentures.

The Registrar may, by order published in the Gazette, exempt a co‑operative or class of co‑operatives from complying with this section.

An exemption may be granted unconditionally or subject to conditions.