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s 93

Effect of ratification by members

In force
Part 4Membership
Division 6Proceedings on behalf of a co‑operative by members and others

93 Effect of ratification by members

(1)

A ratification or approval of conduct by members of a co‑operative —

(a)

does not prevent a person from bringing or intervening in proceedings with leave under section 91 or from applying for leave under that section; and

(b)

does not have the effect that proceedings brought or intervened in with leave under section 91 must be decided in favour of the defendant, or that an application for leave under that section must be refused.

(2)

The Supreme Court may take into account a ratification or an approval of the conduct by members of a co‑operative in deciding what order or judgment (including as to damages) to make in proceedings brought or intervened in with leave under section 91 or in relation to an application for leave under that section.

(3)

In taking a ratification or approval into account under subsection (2), the Supreme Court may have regard to —

(a)

how well‑informed about the conduct the members were when deciding whether to ratify or approve that conduct; and

(b)

whether the members who ratified or approved the conduct were acting for proper purposes.

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