Coop rules/9 Redemption of Shares
(Rule 36) Subject to The Cooperative Association Act, these coop rules and the special rights and restrictions attached to any class of shares, the Association may, by special resolution, redeem any of its shares at the price and on the terms specified by the resolution.
- If the Association proposes, at its option, to redeem some but not all of the shares of any class of shares, it must make its offer ratably to every shareholder who holds shares of that class of shares.
- A redemption of shares under subrule (1) must be made on a fair and equitable basis.
- Subject to The Cooperative Association Act, the Association may sell any share redeemed by it, but, while the Association retains the share, the Association must not exercise any vote, or pay or make any dividend or other distribution, in respect of that share.
- Where a proposed redemption of shares, refund of amount paid on shares or prepayment of a loan would, in the opinion of the directors, impair the financial position of the Association, the directors may suspend the redemption, refund or prepayment for up to 36 months by special resolution.
(Rule 39) Subject to The Cooperative Association Act, if a member withdraws from membership, the period within which the Association must redeem the shares of the former member is 36 months from the effective date of the withdrawal.
(Rule 40) If the Association terminates the membership of a member under #Grounds for termination of membership (Rule 16), the Association must redeem the shares of the member within 36 months.
Amount paid on redemption
(Rule 41) A member is entitled to the amount paid up on the par value of a membership share on redemption by the Association under this Part.
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