Co-operatives Act 2009

The Registrar may, with the approval of the Minister, direct a co‑operative —

to transfer its engagements to a co‑operative approved by the Registrar; and

within a period specified by the Registrar when giving the direction or a further period allowed by the Registrar, to enter into an agreement approved by the Registrar to give effect to the transfer of engagements directed.

The Registrar cannot give such a direction to a co‑operative unless the necessary grounds exist for the giving of the direction, as referred to in section 336(2).

The transfer of engagements must make provision, in a way approved by the Registrar, for the members of the transferor co‑operative who wish to do so to become members of the transferee co‑operative.

If a co‑operative fails to comply with a direction under this section, the Registrar may elect to treat the failure as the necessary grounds —

for winding‑up the co‑operative on a certificate of the Registrar; or

for appointing an administrator of the co‑operative.

The Registrar must notify the co‑operative of the Registrar’s decision under subsection (4).

The Registrar may revoke a direction under this section at any time up until the co‑operative has agreed pursuant to the direction to transfer its engagements.

A transfer of engagements directed under this section takes effect on a day notified by the Registrar in the Gazette.

An officer of a co‑operative must not —

fail to take all reasonable steps to secure compliance by the co‑operative with a direction given under this section; or

by a wilful act or omission be the cause of a failure by the co‑operative to comply with a direction.