Powers of board in response to suspected contravention
281 Powers of board in response to suspected contravention
If the board of a co‑operative is satisfied on reasonable grounds that a person has contravened section 278 in relation to the co‑operative, the board may do either or both of the following —
refuse to register a share transfer involving the person;
suspend a stated right or entitlement that a person has as a member of the co‑operative or attaching to any shares of the co‑operative in which the person has a relevant interest.
The board may request a person who it suspects has a relevant interest in shares of the co‑operative to give specified information to the board about the interest.
A failure by a person to comply with a request under subsection (2) is a reasonable ground for being satisfied that the person has contravened section 278.
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