Maximum permissible level of share interest
278 Maximum permissible level of share interest
A person cannot have a relevant interest in shares of a co‑operative the nominal value of which is more than 20% of the nominal value of the issued share capital of the co‑operative.
The Registrar, by order published in the Gazette, may specify a maximum greater than 20% as the maximum permissible level of share interest for the purposes of subsection (1) for a particular co‑operative.
Unless an order under subsection (2) is in force, a co‑operative, by its rules, may specify a maximum less than 20% as the maximum permissible level of share interest for the purposes of subsection (1) for that co‑operative.
The maximum permissible level of share interest applying under this section may be increased for a particular person by special resolution of the co‑operative concerned passed by a special postal ballot.
A resolution under subsection (4) does not have effect unless —
it is approved by the Registrar; or
the person concerned is another co‑operative.
The Registrar’s approval of the resolution may be given on conditions.
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