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Co-Operative Societies Act 2008


112. Prohibition on purchase shares

1.     Notwithstanding section 111, no society shall purchase or otherwise acquire its shares where—

a.     it is insolvent;

b.    the proposed purchase or acquisition would render it insolvent; or

c.     subject to subsection (2), the proposed purchase or acquisition would, in the opinion of the Board, be detrimental to the financial stability of the society.

2.     Subject to subsection (3), where a purchase or other acquisition of shares pursuant to section 111 or 113, would in the opinion of the Board, impair the financial stability of the society or would be contrary to the interest of the remaining members the Board may suspend the purchasing or acquisition of shares.

3.     The Board may not suspend the purchase of shares pursuant to subsection (2) for a period longer than one year unless the suspension is approved—

a.     by the Registrar; or

b.    by a special resolution of the members.



Co-Operative Societies Act 2008 Back




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