Co-operatives Act 2009

An officer of a co‑operative must not accept a commission, fee or reward, whether pecuniary or otherwise, from a person in relation to a transaction or proposed transaction between the person and the co‑operative.

Penalty for this subsection: a fine of $6 000.

An officer of a co‑operative who commits an offence under subsection (1) is liable to make good to the co‑operative double the value or amount of the commission, fee or reward.

[Section 441 amended: No. 7 of 2016 s. 200.]

442. False statements in loan application etc.

A person must not in or in relation to an application, request or demand for money made to or of a co‑operative —

give information or make a statement to the co‑operative or an officer, employee or agent of the co‑operative knowing it to be false or misleading in a material particular; or

proffer to the co‑operative or an officer, employee or agent of the co‑operative any information or statement provided by another person knowing it to be false or misleading in a material particular.

Penalty for this subsection: a fine of $6 000.

If a person is found guilty of an offence under subsection (1), a co‑operative from which money has been obtained by the person in relation to the commission of the offence may exercise all rights under a mortgage or other security given to it by the person to secure the repayment of money that it could exercise if there were a breach of a covenant or of a term of a contract by which the security was given.

The co‑operative may exercise the rights whether the mortgage or other security was executed by the person alone or by the person and another person or other persons.

[Section 442 amended: No. 7 of 2016 s. 200.]