Co-operative Societies (Amendment) Act, 2013 (No. 12 of 2013)

12. Amendment of section 121 – Loan by credit union The principal Act is amended in section 121 — (a) by repealing sub-sections (5) and (6) and substituting the following — (5) A loan shall not be made to a director, committee member or employee referred to in sub-section (3) if, when combined with all other outstanding THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013 loans to persons referred to in sub-section (3), including the persons’ busi- ness interest it exceeds twenty-five percent of the aggregate of the equity No. 12 of 2013 shares and the institutional capital of the credit union. [Published in the Official Gazette Vol. XXXIII No. 65 (6) Unless with the prior approval of the Supervisor, a loan shall not be made by dated 14th November, 2013] a credit union to a member or a group of related members if the loan would cause the aggregate amount of loans to the member, the member’s business interest and the group of related members to exceed ten percent of the share capital”.

13. Amendment of section 124 – Receipt of deposits from minors The principal Act is amended in section 124 by deleting the word “minority” in sub-section (4) and substituting the words “a minor”. Passed the House of Representatives Passed the Senate on the 11th September, on the 28th August, 2013. 2013. D. Gisele Isaac-Arrindell, Hazlyn M. Francis, Speaker. President. ________ Printed at the Government Printing Office, Antigua and Barbuda, Romona Small, Romona Small, by Ralph George, Government Printer Clerk to the House of Representatives. Clerk to the Senate. — By Authority, 2013. 600—11.13 [ Price $ 3.30 ] The Co-operative Societies (Amendment) Act, 2013 2 No. 12 of 2013 No. 12 of 2013 7 The Co-operative Societies (Amendment) Act, 2013 society as a direct or indirect result of a contravention of this section.”

9. Repeal and replacement of Section 91 – Notice of change of Directors Section 91 of the principal Act is repealed and replaced by the following— “(1) Within twenty one days of the receipt of the list of nominees of the proposed directors or committee members in accordance with section 72(1) (d), the Supervisor shall conduct an investigation on the proposed nominees to determine whether each nominee is qualified in accordance with the criteria set out in section 53(4) to hold the office of a director or member of a committee. (2) At the completion of the investigation, the Supervisor shall notify the cooperative so- ciety of the nominees who are qualified and those who are disqualified, and in the case of a disqualified nominee, give reasons for the disqualification. (3) Where after an annual general meeting for the election of directors and committee members, a vacancy occurs in the membership of the directors or committee, the cooperative society shall within 14 days of the occurrence of the vacancy, notify the Supervisor of the nom- inees appointed to fill the vacancy for the purpose of conducting an investigation to determine whether such nominee is qualified on the basis of the criteria set out in section 53(4) or not. (4) The Supervisor shall, within seven (7) days of the receipt of the nominations, inform the cooperative society of the nominees who are disqualified in terms of section 53(4) and give reasons for the disqualification. (5) The Supervisor shall, on receipt of the successful nomination to fill the vacancy, regis- ter the successful nominee as director or committee member. (6) Notwithstanding subsection (1), where a cooperative society sends an annual return in accordance with section 147 within thirty (30) days after a change is made in its directors, the cooperative society is not required to send the notice required by this section.

10. Amendment of section 96 – Shares The principal Act is amended in section 96 by repealing sub-section (3) and substituting the follow- ing — “(3) A share in a co-operative society is personal property and a shareholder is entitled to a statement on demand showing the number of shares that he owns”.

11. Amendment of section 97 – Share capital The principal Act is amended in section 97 by repealing subsections (2) and (3) and substituting the following – The Co-operative Societies (Amendment) Act, 2013 6 No. 12 of 2013 No. 12 of 2013 3 The Co-operative Societies (Amendment) Act, 2013 THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013

5. Amendment of section 59 – Credit Committee ARRANGEMENT The principal Act is amended in section 59 by repealing the reference to paragraphs “(a) to (d)” in Sections subsection (7) and substituting therefor paragraphs “(a) to (e)”. 1. Short title.

6. Amendment of section 65 – Supervisory and compliance committee

2. Interpretation The principal Act is amended in section 65 by repealing the reference to paragraphs “(a) to (d)” in subsection (7) and substituting therefor paragraphs “(a) to (e). 3. Amendment of section 12- Application for registration

7. Amendment of section 72 -Election of Directors 4. Amendment of section 53 – Board of Directors and Committees The principal Act is amended in section 72 by — 5. Amendment of 59 – Credit Committee (a) inserting after paragraph (c) of sub-section (1) the following paragraphs — 6. Amendment of section 65 – Supervisory and Compliance Committee “(d) the list of nominees of the proposed directors or proposed members 7. Amendment of section 72 – Election of Directors of a committee shall be submitted to the Supervisor for approval

8. Repeal and Substitution of section 77 – Duty care of Directors and Officers within seven days after the close of the nomination;

9. Repeal and replacement of section 91 – Notice of change of Directors (e) a person nominated as a director or a member of a committee of the cooperative society, shall be a fit and proper person in accordance with 10. Amendment of section 96 – Shares the criteria set out under section 53(4)”

11. Amendment of section 97 – Share capital (b) re-number paragraphs “(d), (e), (f) and (g)” of sub-section (1) as paragraphs “(f), (g), (h) and (i)”. 12. Amendment of section 121 – Loan by credit union

8. Repeal and Substitution of section 77 - Duty of care of Directors and Officers 13. Amendment of section 124 – Receipt of deposits from minors Section 77 of the principal Act is repealed and replaced by the following- “77. Duty of care of Directors, Officers etc. (1) Every director, officer, member of a committee or management employee of a coop- erative society shall — (a) act honestly and in good faith in the performance of his functions and duties to the cooperative society; and (b) exercise due care, diligence and skill that a reasonable prudent person would exercise in comparative circumstances. (2) Every director, officer, member of a committee or management employee of a coop- erative society shall be liable to make good any loss or damage suffered by the cooperative The Co-operative Societies (Amendment) Act, 2013 4 No. 12 of 2013 No. 12 of 2013 5 The Co-operative Societies (Amendment) Act, 2013 [L.S.] committee members of the cooperative society; (c) The names of the officers appointed to manage the affairs of the cooperative society; (d) The prescribed application fee; and (e) Such other information in respect of the cooperative society as the supervisor may I Assent, require.”

4. Amendment of section 53 - Board of Directors and Committees Louise Lake-Tack, The principal Act is amended in section 53 — Governor-General. (a) by inserting after sub-section (5) the following subsections — 28th October, 2013. “(6) A co-operative society shall, upon receipt of an application for registration of a cooperative society, consider the application along with accompanying ANTIGUA AND BARBUDA information required under section 12 (3) and satisfy himself that every proposed director, committee member or officer of the cooperative society THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013 is, in accordance with subsection (4), a fit and proper person to hold the office to which he has been nominated. No. 12 of 2013 (7) Where there is a proposed appointment of a director or a member of a AN ACT to amend the Co-operative Societies Act 2010, No. 9 of 2010. Committee, or an employee who constitutes the management of a co-opera- tive society, the co-operative society shall submit to the Supervisor a notice ENACTED by the Parliament of Antigua and Barbuda as follows: of such change as prescribed in Regulations not less than thirty (30) days prior to the proposed date of the appointment.

1. Short title (8) Upon receipt of the notice of change, the Supervisor shall conduct an This Act may be cited as the Co-operative Societies (Amendment) Act, 2013. assessment to determine whether the proposed appointee satisfies the fit and proper person requirements in accordance with the criteria under subsec-

2. Interpretation tion (4). In this Act the principal Act means the Co-operative Societies Act 2010, No.9 of 2010. (9) The Supervisor shall within fifteen days of the receipt of the notice of change—

3. Amendment of section 12- Application for registration (a) approve the proposed appointment and notify the co-operative Section 12 of the principal Act is amended by the repeal of subsection (3) and the substitution of society; or the following– (b) where the proposed change is not approved, inform the co-operative “(3) An application under subsection (1) shall be accompanied by the following- society that the proposed appointment is not approved and give rea- sons for not approving.” (a) Three copies of the proposed laws of the cooperative society; (b) by re-numbering subsection (6) as sub-section (10). (b) The names of persons appointed and consented to act as provisional directors and