Co-operative Societies Act, 2011 (No. 8 of 2011)

251. Repeal SCHEDULE Constitution and Procedure of the Co-operative Societies Appeals Tribunal 2011 Co-operative Societies Act 8 47 GRENADA ACT NO.8 OF 2010 1 assent, CARL YLE ARNOLD GLEAN 6th April, 2011. Governor-General. AN ACT to make new provisions with respect to the registration, supervision, governance, operation and management of co-operative societies including credit unions, the members of which have a common bond of philosophy and socio-economic objectives, and for incidental and related purposes. [15th April, 2Ull]. BE IT ENACTED by the Queen's Most Excellent Majesty by and with the advice and consent of the Senate and the House of Representatives and by the authority of the same as foIl0 ws- PART I PRELIM1NARY

1 — This Act may be cited as the Short title and

1. This Act may be cited as the Short title and commencement. CO-OPERATIVE SOCIETIES ACT, 2011 48 Act 8 Co-operative Societies 20ll and shall come into force on a date fixed by the Minister by Order published in the Gazette. Interpretation. 2.-(1) In this Act, unless the context otherwise requires~ "amendment", in relation to bye-laws, includes the making of a new bye-law and the alteration, substitution or revocation of a bye-law; "apex body" means a body established under section 221 ; "associate" means- (a) the immediate relative of person, including a spouse, or children, (including step-children) and their spouses, a parent, brother or sister; (b) any co-operative society which holds 20% or more of a co-operative SOCIety'S shares III accordance with section 100 of this Act; (c) any company or co-operative society, in which the co-operative society holds twenty per cent or more of shares, to which voting rights are attached; (d) a member of the Board or committee, an employee of a co-operative society, or a business partner; (e) any company or co-operative society over which a co-operative society has control; or (f) any company or co-operative society ofwhich any of the persons referred to in paragraph (c), is a director, manager or has control, 20ll Co-operative Societies Aa8 49 notwithstanding that at the relevant time, any of the persons in question, not being individuals, have not yet come into existence or have ceased to exist; "Board" means the Board ofdirectors or other directing body, by whatever name called, to whom the management of the affairs of a co-operative society is entrusted; "bonus" means, a share of the profits of a co-operative society divided among its members, in proportion to the volume of business done with the co-operative society by them, from which the profits of the co-operative society were derived; "bye-laws" means, the registered bye-laws made by a co-operative society under this Act, and includes a registered amendment of the bye-laws; "capital base" means- (a) paid up capital, being qualifying and equity shares paid up in cash, and invested as risk capital by the members, and forming a permanent part of the capital of the co-operative society, and which are redeemable only upon transfer to another member; and (b) institutional capital, less any amount by which that total has become impaired by operating, or other losses; "CARlCOM Member State" means, a Member State of the Caribbean Community established by the 50 Ad8 Co-operative Societies 2011 Revised Treaty of Chaguaramas signed at Nassau, The Bahamas, on 5 July 2001~ "central co-operative society" means, a co-operative society whose membership comprises cooperative societies providing technical and other services; "central credit union", means a credit union whose membership comprises principally, other credit unions, and generally provides liquidity services, deposit facilities and investment opportunities to members; "consumers' co-operative society" means, U co-operative society whose primary purpose is to purchase, procure, process, manufacture, exchange, hire or deal in goods or services for sale at retail, to its members, who are to be the ultimate users or consumers of those goods and services; "co-operative society" means, a self-help, collectively owned and democratically controlled business enterprise registered under this Act, which consists of a group ofpeople who provides socially desirable and economically beneficial services to its participating members on a joint action, and not for profit basis; "credit union" means, a co-operative society organised by a group of people with a shared field of membership for provident and productive purposes, and providing cooperatively, pooled financial services to its members, including savings and lending business; "delinquent loan" means, a loan where a borrower has defaulted on the agreed terms of repayment: 20lJ Co-operative Societies Act 8 51 "deposit" means, a sum of money paid on terms- (a) under which the sum will be repaid, with or without interest or a premium, and either on demand or at a time, or in circumstances agreed by, or on behalf of the person making the payment and the person receiving it; and (b) which are not referable to the provisions of property or services, or to the giving of security, and for the purposes ofthis definition, money is paid on terms which are referable to the provision ofproperty or services, or the giving of security if- (i) it is paid by way of advance or part payment for the sale, hire, or other provision of property or services of any kind, and is repayable only in the event that the property or services is, or are not in fact sold, hired or otherwise provided; (ii) it is paid by way of security for payment for the provision of property or services of any kind provided, or to be provided, by the person by whom, or on whose behalf the money is accepted; or (iii) it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise; "deposit guarantee" means, an insurance policy or a fund that guarantees the return of deposits in a credit union against loss, in the event that the institution fails; 52 Act 8 Co-operative Societies 20Il "director", means, a member of the Board who IS elected in accordance with section 72; "dividend" means, a share of the surplus of a co-operative society, divided among its members, in proportion to the share capital held by them; "doubtful loan" means, a loan that is twelve or more months in default; "equity shares" constitutes the common stock or risk capital, in addition to qualifying shares purchased by individual and institutional members, as their ownership stake, in the safety, soundness and competitiveness of their co-operative society; "GARFIN" means, the Grenada Authority for the Regulation of Financial Institutions Act, 2008; "guidelines" means, the guidelines issued under section 8; "housing charges" means the fee charged by a housing co-operative society to its members, to cover the costs of providing housing accommodation; "housing co-operative society", is a co-operative society that owns real estate, and where each shareholder in the society is granted the right to occupy one housing unit; "housing unit" means, housing accommodation intended for individual or family usc; 2011 Co-operative Societies Act 8 53 "industrial co-operative society" means, a co-operative society whose primary purpose is to operate an enterprise, in which its members are the workers necessary for the operation; "institutional capital" means, the aggregate of a co-operative society's (a) statutory or other non-distributable general reserves; (b) earnings retained after distribution of surplus; and (c) such other funds which may be rccei ved by way of non-refundable donations for no specified purpose, which are not available for distribution; "legal representative" In relation to a co-operative society, member or other person means, a person who stands in place of and represents the co-operative society, member or other person and includes a trustee, executor, administrator, assignee, or receiver of the co-operative society, member, or other person; "member", includes 11 person, or co operative society, joining in the application for the registration of a co-operative society, and a person, or co-operative society, admitted to membership after registration, III accordance with this Act and the bye-laws; 54 Ad8 Co-operative Societies 2011 "Minister" means, the Minister with responsibility for co-opera Live societies; "minor" means, an individual under the age offourteen years; "officer" includes a president, vice president, secretary, treasurer, director or other person empowered under this Act or the Regulations or bye-laws, to give directions in regard to the business of a co-operative society; "PEARLS" means, the International Prudential and Operating Standards and Monitoring System as produced and approved by the World Council of Credit Unions, in respect ofprotection, asset quality, rates of return and costs, liquidity and signs of growth; "prescribed" means, prescribed in the Regulations; "primary co-operative society" means, a co-operative society that is owned by individual members; "qualifying shares" means, the mandatory, non-With-drawable minimum shares to be purchased by an approved applicant to be admitted, and to enjoy the full rights and privileges of becoming a member of a co-operative society; "Register" means- (a) in the case of credit unions, the Register of Cre111l Unions to be kept under section 6, 2011 Co-operative Societies Act 8 55 (b) in the case of co-operative societies other than credit unions, the Register of Co-operative Societies to be kept under section 6; "Regulations" means, the Regulations made pursuant to section 247; "secondary co-operative society" means, a co-operative society that is owned by an association of primary co-operative societies; "security" when issued by a co-operative society- (i) means, a share or a debt obligation of a co-operative society; and (ii) includes a certificate confirming the share or debt 0 bligation; "security interest" means, an interest in or charge on, the property of a co-operative society, by way of a mortgage, charge, hypothec pledge or other obligation taken by a creditor, to secure payment of a debt of the co-operative society; "special resolution" means, a resolution- (a) at least ten days' notice of which has been given, specifying the intention to propose the resolution as a special resolution, that is passed by a majority of at least three-fourths of the members or delegates ofa co-operative society, who voted at a general meeting with respect to that resolution; or 56 Act 8 Co-operative Societies 20ll (b) at least ten days' notice of which has been given, that is approved by written affirmative vote, of at least three-fourths of the members of the co-operative society who-- (a) voted on that resolution within the prescribed time and in the prescribed manner; (b) cast a written vote in the manner and within the time specified in the notice; or (c) that is consented to in writing, by all of the members or delegates of the co-operative society, who are entitled to vote at a general meeting on that resolution; "stabilisation [WId-means, a facility to provide technical assistance, advice, and limited financial assistance, to credit unions that are experiencing solvency problems or are insolvent; "statutory reserves" means, the reserve" estahli shed under section 125; "tertiary co-operative society" means, a co-operative society that is owned by an association of secondary co-operative societies; and "Tribunal" means, the Co-operative Societies Appeals Tribunal established under section 195. 2011 Co-operative Societies Act 8 57 (2) In this Act- (a) a reference in this Act to the "Registrar" shall, in relation to a credit union, be construed as a reference to GARFIN established under the Act; (b) a reference in this Act to the "Registrar" shall, in relation to a co-operative society other than ;'l credit union, he construed as a reference to the Registrar of Co-operatiyes appointed under section 5(1). 3.---( 1) For the purposes ofthis Act, a co-operative society Co-opemtive principles conforms to co-operative principles if- (a) each member or delegate, other than in a secondary or tertiary co-operative society, has no more than one vote; (b) no member or delegate is entitled to vote by proxy; (c) its membership is open, voluntary and available, without any artificial restriction or any unlawful basis of discrimination, to any person who can use its services and is willing to accept the responsibility of membership; (d) its business is carried on primarily as an economic activity for the benefit of its members; (c) its primary concerns are its institutional capacity and financial strength, including 58 Act 8 Co-operative Societies 2011 adequate reserves, retained earnings and internal systems designed to ensure con- tinuous growth and service to members', (t) it utilises any surplus or savings arising out of its operations- (i) to strengthen its business; (ii) to provide or improve common services to its members; (iii) for the payment of dividends on permanent ownership capital purchased by its members; (iv) among its members, in proportion to the business done by each member with the co-operative society; (v) to enucMe its members, employees, directors, committee members and the general public, in the principles and techniques ofeconomic and democratic co-operation; and (vi) for non-profit, charitable, benevolent or cultural purposes; (g) it pursues co-operation with other co-operati ve societies; (h) it provides for continuing education and training; and 20Il Co-operative Societies Act S 59 (i) it contributes to the social and economic development of its community. (2) A co-operative society shall conform to the co-operative principles set out in subsection (I). PART II RFClTSTRA TrON OF rO-OPFR A TrVF SOCfFTTFS

4 — ( 1) A person shall not carryon the business of a Requ irement for

4.-( 1) A person shall not carryon the business of a Requ irement for regi stration. co-operative society unless it is registered in accordance with this Act. (2) A person who contravenes subsection (1) commits an offence, and is liable, on conviction, to a fine not exceeding one hundred thousand dollars, or to imprisonment for a term not exceeding three years.

5 — ( 1) Subject to subsection (2), there shall be a Registrar Registrar

5.-( 1) Subject to subsection (2), there shall be a Registrar Registrar of Co-operative Societies who shall be a public officer appointed by the Publ ic Service Commission, and whose duty shall be to regulate co-operative societies. (2) For the purposes of regulating credit unions, the Registrar shall be the Grenada Authority for the Regulation of Financial Institutions. (3) The Registrar shall be assisted by professional and administrative staff, and may delegate duties to any other person or agent under his or her control, as is necessary, to enable the Registrar to pcrfonn his or her regulatory duties, and to exercise the powers conferred on the Registrar under this Act. 60 Act 8 Co-operative Societies 2011 (4) The Registrar shall- (a) register all viable co-operative societies; (b) inspect and monitor all co-operative societies; (c) supervise and regulate 811 co-operative societies; and (d) lead and manage the regulatory process. Register 6. The Registrar shall- (a) in the case of co-operative societies other than credit unions, keep and muintain a register to be known as the "Register of Co-operative Societies", in which shall be recorded, the details of all co-operative societies registered under this Part; or (b) in the case ofcredit unions, keep and maintain a register to be known as the "Register of Credit Unions", in which shall be recorded the details of all credit unions registered under this Part. Registrar's 7.~(1) Where- regulatory PQWCf:5. (a) after an examination ofa co-operative society, or on the receipt of any information, the Registrar is ofthe opinion that the funds ofthe co-operative society arc not being properly managed Or protected; or 2011 Co-operative Societies Act 8 61 (b) the Registrar has reason to believe that a co-operative society is likely to take any action that would affect the financial soundness of the co-operative society, the Registrar may- (i) by notice in writing, direct the Board within such period as the Registrar may specify, to cease such action or such practice as the Registrar may specify, or to take such measures as the Registrar considers necessary to protect the funds of the co-operative society, or the interests of the co-operative society's members; and (ii) place a co-operate society under administrative supervision, and appoint a person who, in the Registrar's opinion, has the necessary experience and training, to supervise or advise the co-operative society on the action to be taken to remedy the situation. (2) A person appointed under subsection (1)(b )(ii) shall hold office for a period not exceeding twelve months, and on such terms as the Registrar shall specify. (3) A person appointed under subsection (l )(b)(ii) may be paid such remuneration as the Registrar may determine, and such remuneration, and any other expenses of and incidental to the appointment, shall be defrayed out ofthe funds of the co-operative society 62 Act B Co-operative Societies 2011 (4) Notwithstanding sections 23 and 227 ofthis Act, where it appears to the Registrar that a requirement in this Act, the Regulations or the bye-laws are being contravened, but the circumstances are not such as to justify the taking of action under section 227, or the suspension of registration under section 23, the Registrar may give such directives to the co-operative society or person, as seems appropriate. (5) A director, committee member, employee or agent of a co-operative society, shall at all times give all information required by a person appointed under subsection (l)(b)(ii), for the full and satisfactory performance of his or her duties; and for this purpose, section 186 shall :-Ipply, as if any reference therein to the Registrar included a reference to a person appointed under subsection (1 )(b)(ii). (6) A person appointed under subsection (l)(b)(ii) shall report to the Registrar, in such manner and with such frequency as the Registrar may direct, on the affairs uf the co-operative society. (7) A co-operative society or a person who is required to take any action under this section, may within twenty-one days of the service of the notice by the Registrar, make representation in writing, to the Registrar, as to why the action required should not be taken. (8) Where the co-operative society fails to comply with the notice referred to in subsection (l )(b)(i), after giving the Ro;)rd the opportunity to he heard in a general meeting called by the Registrar for the purpose, the Registrar may- (i) remove from office; or (ii) suspend from office for such period as the Registrar considers appropriate, 201I Co-operative Societies Act 8 63 all or any of the directors of the co-operative society, and direct that the co-operative society be managed by such persons as he may appoint, for a period not exceeding fifteen months. (9) Where a director is suspended under this section, the remaining directors shall be regarded as constituting the Board. (10) Where all the directors are removed under tills section, persons appointed under this section shall exercise all the powers and perform all the functions of a duly constituted Roard, and "h811 make arrangements prior to the end of their term of management, for the election of a new Board in accordance with the bye-laws of the co-operative society. 8.-{ I) The Registrar may, after consultation with Power to issue guidelines. co-operative societies, issue guidelines in respect of--- (a) prudential standards to be observed by co-operative societies, to ensure the safety and soundness of the funds of co-operative societies; (b) the management and investment of the funds of co-operative societies; (c) the calculation and management of doubtful and delinquent loans; (d) self insurance arrangements; (c) prudential guidelines in respect ofanti-money laundering, and combating the financing of terrorism; 64 Act 8 Co-operative Societies 2011 and in the case of credit unions, the guidelines issued under this subsection shall be consistent with PEARLS. (2) Where the Registrar intends to make any substantive modification to the guidelines, the Registrar shall consult with the co-operative societies. (3) The Rcgi strar shall~ (a) make the guidelines and all amendments to the guidelines available for inspection by the public; and (b) on payment of any prescribed fee, provide copies of the guidelines and all amendments therein to the public. (4) The Registrar shall, at such intervals as the Registrar determines, review any guidelines for the time being in force. (5) The Registrar shall publish the guidelines issued under this section, and any amendment to the guidelines, in the Gazette. Certificate of Registrar.

9 — ( I) The Registrar may issue a person with a certificate

9.-( I) The Registrar may issue a person with a certificate stating that- (a) a document required to be sent to the Registrar has or has not been received by the Registrar; (b) a name, whether that ofa co-operati ve society or not, is or is not on the Register; and (c) a name, whether that ofa co-operative society or not, was or was not on the Register on a stated date. 2011 Co-operative Societies Act 8 65 (2) An officer authorised by the Registrar may sign a certificate issued under this section. (3) The signature required under subsection (2) may be printed or mechanically reproduced on the certificate. (4) A certificate mentioned in subsection (2), is admissible in evidence as conclusive proof of the facts stated in the certificate, without proof of the office or signature of the person purporting to have signed the certificate. 1O.~(l) The Registrar may refuse to receive, file or Power to refuse documents. register any document that in his or her opinion- (a) contains any matter contrary to Iaw; (b) has not, by reason of any omission or error in description, been properly completed; (c) does not comply with the requirements of this Act; (d) contains any error, alteration or erasure; (e) is not legible; or (f) is not durable. (2) The Registrar may request in respect of a docwnent refused under subsection (l}- (a) that it be amended or completed and resubmitted; or (b) that a new document be submitted in its place. 66 Act 8 Co-operative Societies 2011 Verification of 11. The Registrar may require, that a document or documents information contained in a document required by this Act or the Regulations to be sent to the Registrar, bc verified by affidavit or otherwise. Application for 12.-(1) Subject to subsection (2), an application for registration. registration of a co-operative society under this Part, shall be submitted to the Registrar in the prescribed form and in such manner as the Registrar may determine. (2) An application under subsection (1) shall be signed- (a) in the case of a co-operative society of which no member is registered as a co-operative society, by at least one-third of the total membership of the co-operative society; (b) in the case of a co-operative society where not all members of the co-operative society are registered co-operative societies, by at least three-quarters of the total membership of the co-operative society; and (c) in the case 0 f a co-operati ve society where all the members are registered as co-operative societies, on behalf of at least two such co-operative societies. (3) An application under subsection (l) shall be accompanied by- (a) three copies of the proposed bye-laws of the co-operative society; 2011 Co-operative Societies Act 8 67 (b) the prescribed application fee; and (c) such other information in respect of the co-operative society as the Registrar may require.

13 — (1) A co-operative society shall include III its Contentofand

13.-(1) A co-operative society shall include III its Contentofand amendment to bye-laws provisions- bye-Iaws. (a) respecting its objects, core business and conditions of membershi p, inel uding- (i) the rights of joint members, if any; (ii) the qualification for membership, the withdrawal ofmembers and the transfer of membership; (iii) the amount of the membership fee and the annual subscription, if any, to be paid hy members, (iv) the conditions on which membership ceases or may be terminated, the disposition that may be made on cessation or termination of a member's interest, and the detcrrnlnatiou of the value of the member's interest; and (v) the minimum val ue ofequity shares that may be held by each member; (b) respecting voting rights and the rights of making, amending and repealing bye-laws, the right of a member to vote by ballot, and the manner, form and effect of votes at meetings; 58 Act 8 Co-operative Societies 2011 (c) respecting the quorum for meetings; (d) respecting directors, officers an d members of the committees of directors- (i) their qualifications, terms of office and removal; (ii) the filling of vacancies; and (iii) their powers and duties; (e) respecting the i'Hldress of the co-operative society; (f) respecting the distributiou of tilt: property of the co-operative society on dissolution: (g) respecting the borrowing powers of the co-operative society and the procedure for exercising those powers; and (h) respecting any matters, in addition to those set out in paragraphs (a) to (g), that the members may consider necessary or desirable. (2) SUbject to subsection (3), where the bye-laws require a greater number of votes of directors or members than that required by this Act to effect any action, the bye-laws shall prevail. (3) The bye-laws may not require a greater number of votes of members to remove a director, than the number required for a special resolution. 2011 Co-operative Societies Act 8 69 (4) Subject to this Act and the bye-laws, the members of a co-operative society may, at an annual general meeting or a special meeting, amend the bye-laws by special resolution, by notice of the proposed amendment together with notice of the meeting- (a) is sent by mail to the members, at the addresses given in the register of members; or (b) is published in not less than two issues of a newspaper published and circulated in Grenada, or by posting the notice in a place, or through a medium of communication that, as stipulated in the bye-laws and in the opinion of the Board, is prominent and accessible to members. (5) An amendment to the bye-laws shall be submitted by the co-operative society to the Registrar for registration in accordance with subsection (6), and no amendment shall be valid until it has been registered. (6) An application to register an amendment of the bye-laws, shall be accompanied by three copies of the amendment certified to be true copies, by the secretary and president of the co-operative SOCIety together WIth a copy of the resolution. (7) On being satisfied that an amendment of the bye-laws is not contrary to this Act, the Regulations or the guidelines, the Registrar shall register the amendment. (8) On registration of an amendment ofthe bye-laws of a co-operative society, the Registrar shall send to the co-operative society a certified copy ofthe amendment, which shall be conclusive evidence of the fact that the amendment has been duly registered. 70 Act 8 Co-operative Societies 2011 (9) If the Registrar refuses to register an arnendment- (a) the Registrar shall notify the co-operative society in writing, of the refusal, the reasons for the refusal and of the co-operative society's right to appeal under paragraph (b); and (b) the co-operative society may, within twenty-one days of the notice of refusal, appeal to the Tribunal. Effect of bye-laws

14 — The bye-laws of a co-operative society when

14. The bye-laws of a co-operative society when registered, shall bind the co-operative society and its members to the same extent as if they- (a) had been signed and sealed by the co-operative society and by ;.;very member; and (b) contained covenants on the part of each member and the legal representative of each member, to observe the bye-laws. Conditions for registration. 15.-( 1) A co-operative society shall not be registered, or having been registered, shall not continue to be registered under this Part- (a) unless its membership consists- (i) in the case of a credit union, of not I~<:,,, than one hundred members; (ii) in the case of any other co-operative society, of not less than ten members; 2011 Co-operative Societies Act 8 71 (b) unless it is economically viable, and has provision for equity, capital expansion, and continuous business growth; (c) unless there is conformity among its membership with all the co-operative principles as set out in section 3; (d) unless the word "Co-operative" or "Credit Union" as the case may be, forms part of the name of the co-operative society, and, in the case of a co-operative society registrable under subsection (2), the words "Junior Cooperative", form part of the name of the cooperative society; (e) in the case of a co-operative society to be registered with limited liability- (i) unless the word "Limited" is the last word of the name of the co-operative society; and (ii) in the case of a primary co-operative society, unless each member of the primary co-operative society is a shareholder, and has one vote in the democratic proceedings of the co-operative society; (f) if the name of the co-operative society is identical to that of another co-operative society, or <:0 nearly resemhlcs the name of another co-operative society, as to be likely to mislead the members of the public as to its identity; 72 Act 8 Co-operative Societies 2011 (g) unless it has and maintains an address in Grenada to which all notices and com- munications may be sent; (h) unless its bye-laws conform to this Act; (1) unless it complies with the guidelines issued under section 8; (j) unless its policies, in respect of shares, loans, deposits and investments are documented and comply with this Act; (k) unless, within sixty days after the issue of the certificate of registration, the co-operative society paints or affixes its registered name in letters that are easily legible, in a conspicuous position on the outside of the place where the business of the co-operative society is carried on; (l) unless it has commenced business within ninety days of its registration under this Act; and (m) unless it complies with the law in force in Grenada, relating to anti-money laundering, proceeds of crime and anti-terrorism. (2) The Registrar may register as a junior co-operative, a co-operative society whose membership consists solely of members of a school, club or cultural organization, who are under the age of fourteen years. (3) In the determination of the viability of an applicant or existing co-operative society, the Registrar may have regard to- 2011 Co-operative Societies Act 8 73 (a) the demand for the proposed or current servrces; (b) the capital base of the co-operative society; (c) the co-operative society's membership and business size, growth, and growth potential; and (d) the capacity of the co-operative society to sustain management and audit costs. (4) A registered co-operative society shall implement suitable measures, procedures and policies to counter money laundering and to combat the financing of terrorism. (5) Notwithstanding the generality ofsubsection (4), every registered co-operative society shall, in addition to complying with the provision of this Act and Regulations made under this Act, also comply with the provision any existing legislation dealing with: (a) Anti-money Laundering Regulations made under the Proceeds of Crime; (b) Anti-Terrorism; (c) Grenada Authority for the Regulation of Financial Institutions; and (d) any other relevant financial services legislation promoting good governance, financial accountability and made to safeguard against money laundering and financing of terrorist activity. 74 Act 8 Co-operative Societies 2011 Registration of co-operative 16.--( I) Where the Registrar is satisfied that an socteues, application has been made in accordance with this Act, the Registrar shall, within three months of the receipt of the application, register the co-operative society and its bye-laws, and issue the co-operative society with a certificate of registration in the prescribed form. (2) The name under which a co-operative society is registered under this Act shall be published in the Gazette, and shall be noted in the Register. (3) Where the Registrar refuses to register a co-operative society, the Registrar shall give the applicant reasons in writing, for the refusal. Eftect of ccrti ficatc of 17.--(1) Except for a co-operative society that is to be registration. taken to be registered under section 250, a co-operative society comes into existence on the date shown in its certificate of registration. (2) A certificate of registration issued by the Registrar to a co-operative society, is conclusive proof that the co-operative society named in the certificate is registered under this Act, and has complied with all the requirements of registration under this Act Capacity as body corporate.

18 — The registration of a co-operative society renders it a

18. The registration of a co-operative society renders it a body corporate and, subject to this Act and its bye-laws, it shall have the capacity, rights, powers and privileges of a body corporate, in accordance with section 49 of the Interpretation Aet. Prohibition on carrying on

19 — A co-operative society shall not

19. A co-operative society shall not- business contrary to bye-laws and (a) carry on a business, Orexercise a power that is law. restricted or prohibited by its bye-laws or by any law in force in Grenada; or 2011 Co-operative Societies Act 8 75 (b) exercise any of its powers In a manner contrary to its bye-laws 20.---(1) A co-operative society shall at all times establish Registered and maintain a registered office, and the address of such officc. office shall be specified in the bye-laws. (2) Subject to subsection (3), the directors of a co-operative society may change the address of the registered office (3) A co-operative society shall inform the Registrar of an intention to change the address of its registered office, at least one month prior to the change being made. 21.---(1) A co-operative society shall display its certificate Maintenance of of registration in a conspicuous manner at its registered office ~:~::ory at all times. (2) A co-operative society shall make available at all reasonable times at its registered office- (a) a copy of this Act and the Regulations; (b) a copy of its bye-laws; (c) the register of members; (d) the minutes of all meetings and resolutions of its members; (e) copies of all notices of directors and notices of change of directors; 76 ActS Co-operative Societies 2011 (f) a register ofits directors setting out the names, addresses and occupations uf all per~ulls who are, or have been directors of the co-operative society, with the dates on which each person became or ceased to be a director; (g) a copy of every certificate issued to it by the Registrar; (h) a copy of every order of the Registrar relating to the co-operative society; (i) a copy of the monthly financial statements of the co-operative society; (j) a copy of the shares transfer register and investment reports; and (k) the minutes of all meetings and resolutions of its directors and committees. Inspection and 22.-( 1) The Registrar may, during the normal business access to records. hours of a co-operative society, observe practices, monitor operations, and inspect or authorise the inspection of the co-operative society, including any of the records listed in section 21(2). (2) Members of a co-operative society, their agents and their legal representatives may, during the normal business hours ofthe co-operative society, examine any ofthc records specified in section 21 (2)(a) to (h), and the returns specified in section 147. Suspension and cancellation of 23.--(1) The Registrar may, by order in writing, suspend registration. the registration of a co-operative society for a period not exceeding twelve months, if the Registrar is satisfied that- 2011 Co-operative Societies Act 8 77 (a) the co-operative society is in breach of any condition of registration; (b) the co-operative society is in breach of any requirement of section 4 or 1S; (c) the co-operative society, or any officer of the co-operative society, has failed or refused to comply with any obligation imposed by, or any requirement of this Act, regulations made under this Act or its bye-laws; (d) the Registrar has not received from the co-operative society, any return, notice or other document or fee required by this Act Or the Regulations, to be sent to it; or (e) the co-operative society has failed to comply with any directive given by the Registrar under section 7 or 8. (2) The Registrar may, by order in writing, cancel the registration of a co-operati ve society if- (a) the co-operative society does not commence huxiness within ninety days of its registration under this Act; (b) the number of members has been reduced to less than the number required for the registration of the co-operative society; (c) the registration has been obtained by fraud or mistake; or 78 Act 8 Co-operative Societies 2011 (d) the co-operative society has not within a period of suspension under subsection (1), rectified the reason for its suspension. (3) The Registrar shall, by order in writing, cancel the registration of a co-operative society if- (a) the co-operative society gives notice to the Registrar that it has ceased to carry on business; (b) the co-operative society is dissolved; (c) the co-operative society is amalgamated with One or more other co-operati ve societies or bodies corporate; or (d) the co-operative society is bankrupt, within the meaning ofthe Bankruptcy Act, but a co-operative society, which includes among its members one or more registered co-operative societies, may not have its registration cancelled under paragraph (a). (4) An order under subsections (1), (2) or (3), shall take effect from the date of the order. (5) The Registrar shall not make an order under subsections (1), (2) or (3) until the Registrar has given the co-operative society an opportunity to be heard. (6) Immediately after the Registrar has suspended or cancelled the registration of a co-operative society, the Registrar shall publish a notice of the suspension or cancellation in~ (a) the Gazelle; 2011 Co-operative Societies Act 8 79 (b) not less than two issues of a newspaper published and circulated in Grenada; and (c) any other appropriate medium of communication that, in the opinion of the Registrar, is prominent and accessible to the public. (7) Where the registration of a co-operative society is cancelled by order under this section, or any other section the co-operative society shall, except for the purpose of winding up, cease to exist as a body corporate from the date on which the order takes effect. 24.--{l) The Board may by resolution- Seal. (a) adopt an official seal; (b) change the official seal adopted under paragraph (a);and (c) determine which of its directors, officers or agents shall sign instruments to which the official seal is affixed. (2) An instrument of agreement executed on behalf uf a co-operati ve society by a director, an officer oran agent of the co-operative society, is not invalid merely because an official seal is not affixed to it. 2S.-{ 1) Except as provided in this section, a person who Pre-registration enters into a written contract in the name of. or on behalf of contracts a co-operative society before it comes into existence, is personally bound by the contract and is entitled to the benefits of the contract. 80 Act 8 Co-operative Societies 2011 (2) Within a reasonable time after a co-operative society comes into existence, it may, by any action or conduct signifying its intention to be bound thereby, adopt a written contract made in its name or on its behalf, before it came into existence. (3) Subject to subsections (4) and (5), where a co-operative society adopts a contract under subsection (2}- (a) the co-operative society is bound by the contract and is entitled to the benefits thereof, as if the co-operative society had been in existence at the date of the contract and had been a party to it; and (b) a person who purported to act in the name of the co-operative society, or on its behalf, ceases to be bound by or entitled to the benefits of the contract. (4) Except as provided in subsection (:'), whether or not a written contract made before the coming into existence of a co-operative society is adopted by the co-operative society, a party to the contract may apply to a court for an order, fixing the obligations under the contract as joint, or joint and several, or apportioning liability between or among the co-operative society and a person who purported to act in the name of the co-operative society, or on its behalf; and the court may, upon the application, make any order it thinks fit. (5) If expressly so provided in a written contract, a person who purported to act for or on behalf of the co-operative soc iety before it came into existence, shall not be bound by the contract or entitled to the benefits of the contract. 20fl Co-operative Societies Act 8 81 PART III MEMBERSHIP AND MEETINGS 26.---( t) An application for membership of a co-operative Application ana . . • qualification society shall be submItted to the Board In such form as the for, and Board may approve. limitations on. mcmbersh rp. (2) In order to qualify for the membership of a co-operative society, a person, other than a registered co-operative society- (a) shall be a citizen or resident of Grenada; (b) shall be a citizen of another CARlCOM Member State; (c) shall not be an undischarged bankrupt; (d) shall not be of unsound mind; and (e) except in the case of a junior co-operative, shall be fourteen years of age or over. (3) Where the co-operative society is a credit union, an individual who is over fourteen years of age. but who has not yet attained the age ofeighteen years, may be admitted as a member, and subject to subsection (4), may enjoy all the rights of membership and be subject to all the liabilities of membership. (4) Where a member referred to in subsection (3), is required to execute any instrument or give any receipt, he OJ she may only do so by his or her parent or guardian. 82 Act 8 Co-operative Societies 2011 (5) A member of a co-operative society who has not attained the age of eighteen years, may not obtain credit from a co-operative society of which he or she is a member. (6) The Board shall cause each applicant for membership to be notified in writing, that his or her application has been approved or disapproved. (7) Subject to subsection (8), a person may be a member of more than one co-operative society if- (a) the person has disclosed in his or her application for membership of a co-operative society the name of any other co-operative society, of which the person is a member; and (b) the co-operative societies both have as a primary object, the granting of loans to their members and the person has fully disclosed to the first co-operative society, that he or she has applied for membership of the second co-operative society. (8) A person who is a member of a credit union, shall not apply for membership ofanother credit union, unless his or her application is accompanied by the written consent ofthe credit union ofwhich he or she is already a member, to his or her proposed dual membership. (9) Where a person becomes a member of more than One credit union, the Secretary or Manager of the second or subsequent credit union, shall so inform the Registrar within fourteen days of the grant of membership. J oint accounts,

27 — Subject to the bye-laws, where individuals have

27. Subject to the bye-laws, where individuals have separate and independent membership in a co-operative society, joint accounts may he held zou Co-operative Societies Act 8 83 28.~(l) A person shall not exercise the rights of Membership rnem bers hirp 0 f a co-operative . SOCIety, - un Iess t he person has mcm"",",,~il' fees and paid the prescribed membership fee, and has satisfied any register. other requirement which may be specified in the bye-laws. (2) A co-operative society shall keep a register of members in which shall be recorded- (a) the names and addresses of its members; and (b) the date on which a person becomes a member, and the date, if any, on which the person ceases to be a member; and (c) such other details as may be prescribed. 29.--(1) Subject to this Act, the liability of a CUITentLi~biJj[yufpa.st member of a co-operative society is limited to the unpaid :d,::;~ent amount of his or her subscription for shares. (2) The liability of a past member or the estate of a deceased member for debts of a co-operative society, as they existed on the date on which the member ceased to be a member, or died, continues for a period of two years after the cessation of membership or death. 30.~(l) A member of a co-operative society may, at any Withdrawal of time, withdraw from membership of the co-operative society, membership. _ in such a manner as may be prescribed by the bye-laws or the Regulations. (2) Withdrawal of membership from a co-operative society, shall be by written notice addressed to the Board. (3) Withdrawal of membership from a co-operative society shall notaffectanyexisting liability of the member, to the co-operative society. 84 Act 8 Co-operative Societies 2011 Termination of 31.---{l) Subject to the bye-laws, the Board may, by a vote membership by Buar d. of at least two-thirds of the directors present at a meeting called for the purpose, order the termination of membership of a member of a co-operative society. (2) Where the Board terminates the membership of a member under this section- (a) the Board shall- (i) within a period of one year, purchase from the member, at par value, all shares in the co-operative society held by the member; and (ii) pay to the member, all amounts held to the member's credit, together with any interest accrued on those amounts, and the amount outstanding on loans made to the co-operative society, by the member, with any interest accrued on those amounts; (b) the secretary ofthe co-operative society shall, within ten days from the date on which the order is made, notify the member ofthe order in writing; (c) the member may appeal from the order to the next general meeting of the co-operative society by giving written notice of his or her intention to appeal, to the secretary, within thirty days from the date the member received notice of the order under paragraph (b); and 2011 Co-operative Societies Act 8 85 (d) the member appeals under paragraph (c), a maj onty or any greater percentage that may be specified in the bye-laws, of the members present at the general meeting, shall confirm or rescind the order. (3) Where the address of a member, the termination of whose membership is ordered under subsection (1), is unknown to the co-operative society, after all reasonable efforts have been made to ascertain the member's address for the purpose of making payment to him or her of all amounts held to his or her credit, the co-operative society shall transfer those amounts to its statutory reserves. (4) Where any amounts are transferred under subsection (3), the co-operative society shall pay those amounts to the person entitled to them, on proof of the person's claim that is satisfactory to the cooperative society. (5) Where a co-operative society transfers amounts held to the credit of a member under subsection (3), it shall immediately submit to the Registrar a return showing- (a) the member's name; (b) the member's last known address: and (c) the amounts transferred.

32 — Members may terminate the membership ofa member Termination of

32. Members may terminate the membership ofa member Termination of where- membership by members. (a) the member has received at least ten days notice of the general meeting at which his or her membership is to be considered; and 86 Act 8 Co-operative Societies 2011 (b) the termination is approved by a majority of at least two-thirds of the members who- (1) are present at the general meeting; and (ii) cast votes on the resolution. Suspension of membership.

33 — Subject to the bye-laws, the Board may, by notice in

33. Subject to the bye-laws, the Board may, by notice in writing, suspend a member for a period not exceeding three months, if they are satisfied that the member is guilty of misconduct. Appeal. 34.~(1) Subject to subsection (2), where a person's membership is terminated under section 31 or 32, or suspended under section 33, the person may appeal against the termination or suspension to the Registrar in the prescribed manner, and the Registrar shall confirm or set aside the resolution terminating or suspending the membership. (2) A person whose membership is terminated for failure to pay fees, assessments, rent or occupancy charges, or to fulfill other financial obligations to the co-operative society, is not eligible to appeal against the termination of his or her membership to the Registrar under subsection (I). (3) Where a person appeals against the termination of his or her membership under section 31(2)(c) or this section, notwithstanding the resolution terminating his or her membership, the person continues to be a member until the termination of his or her membership is confirmed by the meeting of members under section 31(2)( d), or by the Registrar, under this section. Re-admittance

35 — A person whose membership is terminated under

35. A person whose membership is terminated under section 3 I or 32, may be re-admitted to membership only by a two-thirds majority vote of members present and voting at a general meeting. 2011 Co-operative Societies Act 8 87

36 — A co-operative society that is a member of 'another Voting rights of

36. A co-operative society that is a member of 'another Voting rights of co-operative society, shall exercise its voting rights in that aIS member not an who other co-operative society through one of its members duly individual. appointed in that behalf as a delegate, under section 49. 37.--(1) Where a co-operative society is a member of Representatives another co-operative society, the latter co-operative society ofmetmber no an I.~ who shall recognise any individual authorized by a resolution of individual. the directors of the former co-operative society, to represent it at meetings of the latter co-operative society. (2) An individual authorized under subsection (I) may exercise, on behalf of the co-operative society, all the powers ofthat co-operative society, as if it were an individual member. 38.--(1) Subject to the bye-laws, members shall vote- Voting procedure. (a) by a show of hands; or (b) where the majority ofthe members entitled to vote at a meeting so demands, by secret ballot. (2) The chairperson of a meeting has the right to vote, and in the event of an equality he or she is entitled to a second or casting vote. (3) Subject to this Act and the bye-laws, a majority of the members who are present and cast votes at a meeting shall decide all questions.

39 — General meetings ofmembers shall be held in Grenada Place of

39. General meetings ofmembers shall be held in Grenada Place of or, in the case of co-operative societies of a regional or meetings international nature, within the defined geographical area of the co operative society's lawful opcrations- 88 Act 8 Co-operative Societies 20ll (a) at the place provided in the bye-laws; or (b) where the bye-laws contain no provision, at the place determined by the Board. Members not to 40. A member shall not exercise the rights of a member exercise rights until due unless the member has made payment to the cooperative payment. society in respect of membership, or acquired an interest in the co-operative society as specified in the bye-laws of the co-operative society, or as prescribed. FiJSt general 41--{1) This section does not apply to a co-operative meeting. society if it is taken to be registered under section 250. (2) Within two months of the date of its registration, a co-operative society shall hold a general meeting at which all members are entitled to be present and to vote. (3) Notwithstanding subsection (2), where the Board applies to the Registrar, the Registrar may extend the time for holding the general meeting. (4) The business atthe general meeting mentioned in subsection (2) shall include- (a) the adoption of the bye-laws; (b) the adoption of forms of share certificates and records of the co-operative society; (c) the authorizing of the issue of shares; (d) the appointment of an auditor to hold office until the next annual general meeting; (e) the making of banking arrangements; and (f) the transaction of any other business. 2011 Co-operative Societies Act 8 89 42.--{1) A co-operative society shall hold an annual Annualgeneral . ,m each year, not Iater th an thr ee mon th s aft er th e en d meclmgs. meetmg of the financial year of the co-operative society. (2) Notwithstanding subsection (1), where the Registrar receives a written request from the Board of a co-operative society, prior to the expiration of the period of three months referred to in subsection (l), the Registrar may authorize the co-operative society, to hold the annual general meeting at any date not later than six months after the end of the financial year of the co-operative society, that it considers appropriate. (3) The bye-laws may provide for holding semi-annual or other periodic meetings. 43.~-(1) The Board may call a special general meeting of Special general meeting. the members of a co-operative society at anytime. (2) Subject to subsection (3), the Board shall call a special general meeting ofthe members on receipt ofa written request, specifying the purpose of the meeting, from such number of members as may be specified in the bye-laws. (3) The Board shall call the special general meeting mentioned in subsection (2), within twenty days of their receipt ofthe request, and the special meeting shall dispose of the business specified in the request. (4) The Registrar may call a special general meeting of the co-operative society- (a) for the purpose of reporting to the members the results uf any audit, examination or other investigation of the co-operative society's affairs ordered or made by the Registrar, or 90 Act 8 Co-operative Societies 2011 (b) where the co-operative society fails to hold an annual general meeting in accordance with section 42(1) or (2), for the purpose of enabling members to secure any information regarding the affairs of the co-operative society that they arc entitled to receive under this Act, and to deal with any matters affecting the co-operative society. Meeting called 44_--{1) Whp.rp.- by Registrar. (a) in the OpInIOn of the Board, it IS impracticable- (i) to call a general meeting of members in the manner in which meetings of mem bers may be called; or (ii) to conduct a general meeting of members in the manner prescribed in this Act or in the bye-laws; or (b) for any reason, in addition to those described in paragraph (a), the Registrar considers appropriate, the Registrar onhis own initiative may, if satisfied that such a meeting is warranted in the circumstances, order a general meeting to be called, held and conducted in any manner that the Registrar may direct. (2) Without restricting the generality of subsection (1), the Registrar may order that the quorum required in this Act or the bye-laws, be varied or dispensed with at a general meeting called under this section. (3) A general meeting called under this section shall be a valid general meeting. 2011 Co-operative Societies Act 8 91

45 — (1) Except where a written statement is submitted by Resolution in

45.-(1) Except where a written statement is submitted by Resolution in lieu of meeting an auditor under section 142- (a) a resolution in writing, signed by the number of members entitled to vote on that resolution at a general meeting of members as may be specified in the bye-laws, is 3..<; valid as if it had been passed at a general meeting of the members; and (b) a resolution in wnting, dealing with any matter required by this Act to be dealt with at a general meeting of members. and signed by all the members entitled to vote at that meeting- (i) satisfies all the requirements of this Act relating to meetings of members; and (ii) subject to subsection (2), is effective from the date specified in the resolution. (2) The effective date of a resolution described in subsection (l)(b)(ii), shall not be earlier than the date on which the first member signed the resolution. (3) A copy of every resolution described in subsection (1), shall be kept with the minutes ofthe meetings of members.

46 — (1) A co-operative society, shall give at least ten days Notice of

46.-(1) A co-operative society, shall give at least ten days Notice of meetings. notice of any annual meeting or special meeting to its members- (a) by sending the notice by mail to the members, at the addresses given in the register of members; or 92 Act 8 Co-operative Societies 20ll (b) by publishing the notice in not less than two issues of a newspaper published and circulated in Grenada, or by posting the notice in a place, or through a medium of communication that, as stipulated in the bye-laws and in the opinion of the Board, is prominent and accessible to members. (2) Notwithstanding any other provision of this Act, where a co-operative society is required to send a statement, agreement, proposal or other document to its members with a notice of a meeting, and decides to insert the notice of a meeting in a newspaper under subsection (1 )(b), the co-operative society shall- (a) in the notice, inform the members of the document, giving a description of the document that, in thc opinion to the Board, is adequate to describe its nature; and (b) make a copy ofthc document available to any member or delegate who requests it. (3) The notice of any special meeting shall specify the purpose for which the meeting is being called. (4) The proceedings or the business transacted at a general meeting, shall not be invalidated by reason only ofthe non-receipt, by a member, of notice of the meeting. Fixing of record 47.---(]) Subject to subsection (2), for the purpose of date. determining members- (a) entitled to receive payment of a bonus or dividend; 2011 Co-operative Societies Act 8 93 (b) entitled to participate III a distribution on liquidation; or (c) for any purpose in addition to that described in paragraph (a) or (b). except the right to receive notice of, or to vote at a general meeting, the Board may, fix in advance, a date as the record date for the determination of members. (2) The record date mentioned in subsection (l) shall not precede, by more than 30 days, the particular action to be taken. (3) Subject to subsection (4), for the purpose of determining members entitled to receive notice of a general meeting, the Board may fix, in advance, a date as the record date for the determination of members. (4) The record date mentioned in subsection (3) shall not precede, by more than fifty days or by less than eleven days, the date un which the meeting is to be held. (5) Where the Board does not fix a record date- (a) the record date for the determination of mern bers entitled to receive notice 0 f a general meeting shall be- (i) the dose of business on the day immediately preceding the day on which the notice is given; or (ii) if no notice is given, the day on which the meeting is held; and 94 Act 8 Co-operative Societies 2011 (b) the record date for the determination of members for any purpose other than that described in paragraph (a), shall be at close of business on the day on which the Board passes a resolution relating to that purpose. Quorum 48.-(1) Subject to subsection (2), the quorum at any annual general or special meeting of members, shall be specified in the bye-laws. (2) Except where all the members are directors, the number of members present at an annual meeting, general meeting or special meeting, shall not be less than the number of directors plus three. (3) Subject to the bye-laws, where a quorum is present at the opening of a general meeting of members, the members present may proceed with the business of the meeting. (4) Where a quonun is not present thirty minutes after the time fixed for the commencement of a general meeting of members- (a) the members present may adjourn the meeting to a time and place to be determined by the Board, but not later than thirty days after the dale of the adjourned meeting, and IIlay nut transact any other business; and (b) the Registrar or the Registrar's representative may, direct that the meeting proceeds if the Registrar is satisfied that the meeting was convened in accordance with the Act, and that the members present were properly notified, and constitute at least seventy five per cent of the amount required for a quorum. 2011 Co-operative Societies Act 8 95 (5) If at the adjourned meeting there is no quorum, the members present constitute a quorum and may proceed with the meeting. 49.--(1) Where the bye-laws of a co-operative society Delegates. provide for the nomination and appointment of delegates to a general meeting- (a) the delegates shall exercise the powers of membership at any annual or special meeting; and (b) any reference in this Act with respect to the exercise of any power mentioned in paragraph (a), shall be construed as a reference to delegates. (2) The members who elect delegates may, at a special meeting called for the purpose, or at any annual meeting- (a) remove the delegates in any manner provided for in the bye-laws; and (b) notwithstanding subsection (1), amend the bye-laws to eliminate the nomination and appointment of delegates.

50 — (t) A member who is entitled to vote at an annual Notice 01

50.-(t) A member who is entitled to vote at an annual Notice 01 motion. meeting of members may- (a) submit to the co-operative society, a notice of motion, with respect to any matter that he or she proposes to raise at the meeting; and 96 Act 8 Co-operative Societies 20ll (b) discuss at the meeting, any matter with respect to which he or she would have been entitled to submit a notice of motion. (2) Where a member submits a notice of motion, ami requests the co-operative society to send the notice of motion with the notice of the meeting at which the motion is to be presented, or make the notice of motion available to all members entitled to attend and vote at that meeting, the cooperative society shall comply. (3) Where a member submits a notice of motion and requests the co-operative society to include in, or attach to the notice of motion- (a) a statement by the member of not more than two hundred words in support of the motion; and (b) the name and address of the member. (4) A co-operative society is not required to comply with subsections (2) and (3) whcre- (a) the notice of motion is not submitted to the co-operative society, at least forty-five days before the anniversary date of the previous annual general meeting of members; (b) in the opinion of the directors, the notice of motion is submitted by the member primarily for the purpose of- (i) enforcing a personal claim or redressing a personal grievance; or 2011 Co-operative Societies Act 8 97 (ii) promoting general economic, political, racial, religious, social or similar causes; (c) the co-operative society, at the member's request, included a notice of motion in a notice of a meeting of members held within two years preceding the receipt of the notice ofmotion submitted under subsection (I ), and the member failed to present the notice of motion at the meeting; (d) substantially, the same notice of motion was submitted to members in the notice of a meeting of members held within two years preceding the receipt of the members request, and the notice of motion was defeated; or (e) in the opinion of the Board, the rights conferred by this section are being abused to secure publicity. (5) A member who requests that a notice of motion and any statement, be sent with the notice of the meeting at which the motion is to be presented, shall pay the cost of sending the notice of motion and statement, unless the members present at the meeting decide otherwise by a majority vote. (6) A co-operative society, or a person acting on behalf of a co-operative society, shall not incur any liability by reasons only of circulating a notice of motion or statement in compliance with this section. 98 Act 8 Co-operative Societies 2011 (7) Where a co-operative society refuses to include a notice of motion in a notice of a meeting, the co-operative society shall, within thirty days after receiving the proposal- (a) notify the member submitting the notice of motion of its intention to omit the notice of motion from the notice of the meeting; and (b) send to the member a statement of the reasons for the refusal. (8) Where a member claiming to be aggrieved by a refusal under subsection (7) applies tu the Registrar, the Registrar may suspend the holding of the meeting to which the motion is sought to be presented, and give any directions that it may consider appropriate. (Q) A co-operat ive society or a person cl airning to he aggrieved by a notice ofmotion, may apply for permission for the co-operative society to omit the notice ofthe meeting and, where the Registrar is satisfied that subsection (5) applies, the Registrar may give permission. (10) In this section "notice of motion" means, a notice of motion submitted to a co-operative society under subsection (1 )(a). Power to make bye-laws

51 — ( 1) Subject to this Act and the bye-laws, the members

51.-( 1) Subject to this Act and the bye-laws, the members of a co-operative society may, at any annual meeting or any special meeting, called for the purpose, make, amend, repeal, replace or confirm any bye-laws, where written notice of the proposed making, amendment, repeal, replacement or confirmation- 2011 Co-operative Societies Act 8 99 (a) is forwarded to each member of the co-operative society with the notice of the meeting, at which the making, amendment, repeal, replacement or confirmation is to be considered, by a majority of members present and voting at that meeting; or (b) is not forwarded to each member of the co-operative society with the notice described in paragraph (a), by a three-fourths majority of members present and voting at the meeting. (2) A member may make a proposal, in the maimer provided in section 50, to make, amend, repeal, replace or confirm any bye-law. 52.---(1) Bye-laws shall not have any force or effect unless Effective date of the bye-laws three copies of the hye-taws, cprtifipr! to he true copies hy the president and secretary of the co-operative society, are filed with and approved by the Registrar. (2) Subject to subsection (3), where proposed bye-laws are certified under subsection (1), and receive the members' approval required in section 51(1), the bye-laws shall have immediate force and effect. (3) Bye-laws described in subsection (2) shall cease to have any force or effect, on the expiration of sixty days after the date of the general meeting in which it is approved by the members, unless, within that sixty day period, the bye-laws arc filed with the Registrar under subsection (I). (4) Where the Registrar approves bye-laws, it shall return to the co-operative society, one copy of the bye-laws with the approval of the Registrar stamped on the bye-laws. 100 Act 8 Co-operative Societies 2011 PART IV MANAGEMENT Board of 53.---(1) A co-operative society shall be managed by a directors and committees. Board of directors, which shall be constituted in accordance with this Act and the bye-laws of the co-operative society. (2) The Board shall be constituted by not less than five or not more than thirteen directors, as specified in the bye-laws. (3) The members of a co-operative society may amend the bye-laws to vary the number of directors, but no amendment to decrease the number ofdirectors shall affect an incumbent director. (4) A person who- (a) has been sentenced by a court in any country,. for an offence involving fraud or dishonesty, and has not received a free pardon for that offence; (b) is not in good financial standing with a co-operative society; (c) has made an arrangement with his or her creditors; (d) was a director of a tailed co-operative society ofthe same type; (e) has been convicted on indictment of an offence in connection with the promotion, formation or management of<J body cnrporate; 2011 Co-operative Societies Act 8 101 (f) has been convicted of an offence under this Act; (g) is of unsound mind, and has been so found by a court in Grenada; (h) is, or becomes bankrupt; (i) is under the age of eighteen years or, in the case of a junior co-operative, under the age of ten years; (j) has not been a member of the co-operative society, or a duly appointed representative of a member co-operative society for the past twelve months; (k) is a member who has not transacted any business with Lhe co-operative society for twelve consecutive months, or who represents a member co-operative society, who has not transacted any business with the co-operative society for twelve consecutive months; (I) is an employee of the co-operative society or of the Registrar, or is a partner or employee of the co-operative societys auditor, or of the apex body; (m) holds less than the minimum level uf equity shares in accordance with section 13(1)(a)(v); or (n) is already part of the management of another co-operative society of the same type, 102 Act 8 Co-operative Societies 2011 may not constitute part of the management ofa co-operative society, until his or her disability is removed, but he or she shall retain his or her membership of the co-operative society during the period of such disability. (5) For the purposes of this Part, "management" includes- (a) a person who holds membership of the Board or any committee established by a co- operative society; and (b) a person who is employed by the Board. (6) A person who knowingly holds membership of the Board or of a committee of a co-operative society, or who knowingly seeks employment with, or is employed or continues to be employed by a co-operative society whilst disqualified, under this section commits an offence, and is liable, on summary conviction, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding one year, or to both. Officers. 54.-(1) A co-operative society- (a) shall have a president, a vice-president, a treasurer and a secretary; and (b) may have any officers in addition to those mentioned in paragraph (a), that are provided for in the bye-laws. (2) Subject to the bye-laws- (a) the Board may designate the officers of the co-operative society, appoint persons as officers, specify the officers' duties and 2011 Co-operative Societies Act 8 103 delegate powers to manage the business and a ffairs ofthe co-operative society to them; and (b) a director may be appointed as an officer of the co-operative society. (3) A person shall not be president, vice-president or treasurer uf a co-operative society unless he is a director of the co-operative society. 55.--( I) On the registration of a co-operative society, the Provisional directors and individuals whose names appear in the application for elected registration as having been appointed, and have consented to directors. act as provisional directors- (a) shall have all the powers and perform the duties of directors; and (b) shall hold office until the first general meeting. (2) At the first general meeting and at every annual general meeting, the directors shall be elected in accordance with this Act, the Regulations and the bye-laws.

56 — Subject to this Act, the Regulations and the bye-laws, Powers of

56. Subject to this Act, the Regulations and the bye-laws, Powers of Board. the Board shall- (a) exercise the powers ofthe co-operative society directly, or indirectly thmugh the employees and agents of the co-operative society; (b) ensure the good governance and direct the management ofthe business and affairs ofthe co-operative society; and 104 ActS Co-operative Societies 2011 (c) formulate and implement the policies of the co-operative society, Committees 57.----(1) The Board may establish committees for the more generally. efficient management of various aspects of the business or affairs of the co-operative society. (2) A committee established under subsectiun (I), may consist of members of the Board and other members of the co-operative society, (3) No committee may- (a) fill vacancy among the directors; (h) declare a bonus or a dividend; (c) approve any financial statement of the co-operative society; (d) submit to the members, any question or matter requiring the approval of members; or (e) make decisions, where this Act or the bye-laws require a two-thirds majority or a unanimous vote of the Board. Tenure of committees 58.--( 1) A person appointed to a committee under section generally. 57(1) shall hold office for a period not exceeding one year. (2) A committee member appointed under section 57(1) may be removed by resolution of the co-operative society or of the Board. (3) The removal of a committee member, who is a director, shall not atlect his or her office as a director. 2011 Co-operative Societies Act 8 105 (4) A committee shall- (a) fix its quorum at not less than a majority ofits members; (b) keep minutes of its proceedings; and (c) submit to the Board at each meeting of the Board and to the annual general meeting of the co-operative society, the minutes of the committee's proceedings, since the most recent meeting of the Board or of the co-operative society. 59.-{1) A credit union, central credit union and central Credit co-operative society, shall have a credit committee which cammillee. shall he elected by its members at the annual general meeting (2) A person shall not be elected to the credit committee, if the person is not present at the meeting at which the election is held, unless the person tenders an excuse for his or her absence, which is accepted by the majority of the members present. (3) The members ofthe credit committee shall hold office for such term us the bye-laws provide, and until their successors are elected. (4) The credit committee shall consist of such number of members as may be fixed by the bye-laws, which shall not be less than three. (5) A person shall not be a member of the credit committee, if that person: (a) is a member of the Board or ofthe supervisory and compliance committee, or is an. employee 106 Act 8 Co-operative Societies 2011 of the credit union, central credit union or central co-operative society; or (b) has a delinquent loan with the credit union, central credit union or central co-operative society. (6) A majority of members of the credit committee shall constitute a quorum, (7) The election ofmembers ofthe credit committee shall proceed in keeping with subsections (a) to (d) of section 72 (1). (8) Where a vacancy occurs in the credit committee, the Board may fill the vacancy until the next annual meeting ofthe credit union, central credit union or central co-operative society. (9) The bye-laws of a credit union, central credit union or central co-operative society, may provide for the election and retirement of members ofthe credit committee in rotation, so that no member of the credit committee shall be elected for a term of more than three years, but no person may serve as a member of the credit committee of a co-operative society for more than two consecutive terms, or an aggregate of six successive years. Duties of credit committee.

60 — The credit committee shall

60. The credit committee shall- (a) implement and ensure implementation ofthe approved loan policy; (b) provide prudent oversight of the loans portfolio; 2011 Co-operative Societies Act 8 107 (c) make recommendations to the Board in respect of the loan policy of the credit union; and (d) perform such duties as may be prescribed under this Act, the Regulations and the bye-laws of the credit union.

61 — (1) The Board shall determine the tenus and Credit

61.-(1) The Board shall determine the tenus and Credit committee conditions under which the credit committee shall approve reports. loans to members. (2) The credit committee may, upon such tenns and conditions as the Board may specify, authorize the manager, loans manager or other employees of the credit union, to approve loans to members. (3) A person authorized by the Board to approve loans under subsection (l) or (2), shall submit a written monthly report to the credit committee, stating the number of loan applications received, the number of loans granted, the security, if any, obtained for such loans, and any risks associated with those loans. (4) The responsibi lities and duties of any person authorized to approve loans under subsection (2), are concurrent with the responsibilities and duties of the credit committee. 62.-{l) The credit committee shall~ Approval of loans. (a) meet at least once every month; (b) keep minutes of its meetings; 108 Act 8 Co-operative Societies 2011 (c) submit a monthly report to the Board stating- (i) the number and category of loan applications; (ii) the number and category of loans granted; (iii) the security taken and risks for loans granted; and (iv) applications denied, delinquent loans, classified loans, loans written off, watch listed accounts, large credit exposures and related party loans; and (d) submit an annual report on the matters referred to in paragraph (c), and on the loan portfolio quality and trends, to the annual meeting of the credit union. (2) The members of a credit union may, by special resolution in a special meeting called for the purpose, remove a credit committee which fails to comply with subsection (l )(c). Removal of 63.~( 1) The members ofa credit union may, by resolution members of credit passed by two-thirds of the votes cast at a general meeting committee called for the purpose, remove a member of a credit committee before the expiration of his or her term of office, and shall, at that meeting, elect another member in place of the first mentioned member for the unexpired portion of his or herterm. 2011 Co-operative Societies Act 8 109 (2) The notice calling the meeting of members referred to in subsection (1), shall specify that the purpose of the meeting is to remove the member ofthe credit committee who is named in the notice. (3) A member of a credit committee removed under this section, shall have the right to make such representations at the general meeting to the members of the credit union. regarding the resolution for his or her removal as he or she may think fit, and may be represented at the general meeting by an attorney-at-law or an agent.

64 — Where a member of a credit committee fails to attend Removal of

64. Where a member of a credit committee fails to attend Removal of three consecutive meetings without, in the opinion 'of the ~~:~~m of Board, reasonable cause, or fails to perform any of the duties committee by allotted to the member as a member ofthe credit committee, Board. the member's position on the credit committee may be declared vacant by the Board, who may then appoint a qualified person to fill the vacancy until the next annual general meeting of the credit union.

65 — (1) A co-operative society shall have a supervisory Supervisory and

65. (1) A co-operative society shall have a supervisory Supervisory and · an d camp Ilance . committee, wh0 s ha 11 b e eIecte d by Its . committee, compliance members at the annual general meeting. (2)A person shall not be elected to a supervisory and compliance committee, if that person is not present at the meeting at which the election is held, unless he or she tenders an excuse for his or her absence, which is accepted by the majority of the members present. (3) The members of a supervisory and compliance committee shall hold office for a tenn of three years, or until such time that their successors are elected, whichever is later. 110 Act 8 Co-operative Societies 2011 (4) The supervisory and compliance committee shall consist of the number of members specified in the bye-laws, which shall not be fewer than three. (5) A person who IS a member of the Hoard or the credit committee, or who is an employee of the co-operative society, shall not be a member of the supervisory and compliance committee. (6) A majority of members of the supervisory and compliance committee shall constitute a quorum. (7) The election of members of the supervi sory and compliance committee shall proceed in keeping with subsections (a) to (d) of section 72 (1). (8) Where a vacancy occurs in the supervisory and compliance committee, the supervisory and compliance committee may fill such vacancy until the next annual meeting of the co-operative society. (9) The bye-laws of a co-operative society may provide for the election and retirement of members of the supervisory and compliance committee in rotation, except that a member ofthe supervisory and compliance committee shall not- (a) be elected for a term exceeding three years; (b) serve no more than six successive years, but shall become eligible for re-election after the expiration of one year. rlIl1le'S-, functions and 66.---(1) The supervisory ami compliance committee powers of shall- supervisory and compliance committee. 2011 Co-operative Societies Act 8 111 (a) keep minutes of its meetings; (b) make, or cause to be made, not less than twice in the period between annual general meeting of the co-operative society, an examination of the books and documents of the co-operative society, which shall include an inspection of the securities, cash accounts and all records relating to loans, purchases and sales; (c) make, or cause to be made, once in the period before the next annual general meeting, a companson between the pass-book or statement of account, of a random sample of at least lO% of all the members of the co-operative society, and the appropriate records of the co-operati ve society; (d) ascertain that all actions and decisions of the Board, committees, management and staff, relating to the affairs of the co-operative society, are in accordance with this Act, the Regulations, the bye-laws and the approved standards and policies of the co-operative society; (e) submit a written report on the results of its examinations and enqumes, under this section, to thc Board and the management of the co-operative society, within seven days of each meeting of the supervISOry and compliance committee; and (f) submit a written report on the result of its examinations and enquiries under this section, to the next annual general meeting or, if it thinks fit, to a special general meeting of the co operative society. 112 ActS Co-operative Societies 2011 (2) The supervisory and compliance committee shall have access, at all times. to the books and documents of the co-operative society. (1) Memhers of the supervisory and compliance committee may attend meetings of the Board and all other committees of the co-operative society, as observers. Compliance 67.----(1) The Board shall appoint a senior qualified officer. professional to monitor and periodically report to the supervisory and compliance committee and the Board, on the levels of awareness, adherence and compliance in the internal operations of the society. (2) A compliance officer appointed under subsection (1) shall track gaps and improvements in compliance with the Act, other applicable legislation, standards anti best practices in keeping with legislation, and guidelines in force, for relating to anti-money laundering and combating terrorist financing. Misappropria- 68.~(l) When the supervisory and compliance committee tion MId other contraventions is ofthe opinion that the funds, securities or other property of of the Act. the co-operative society have been misappropriated or misdirected, or that the bye-laws ofthc co-operative society, this Act or the Regulations have been contravened, by the Board or a director, the credit committee, or a member of the credit committee or by an officer or employee engaged by the Board, the supervisory and compliance committee shall immediately inform the Board and the Registrar, in writing. (2) The supervisory and compliance committee shall, with the approval of the Board, appoint an auditor or some other body to undertake a review to investigate, or nssist in determining, whether any of the funds, securities or other property of the co-operative society have been misappropriated or misdirected, and the remuneration of any 2011 Co-operative Societies Act 8 113 auditor or other body to be appointed, shall be determined by the supervisory and compliance committee and pain hy the co-operative society. (3) In the event ofa misappropriation or misdirection or contravention, or a suspected misappropriation or misdirection or contravention, pending the outcome of the investigation or review referred to in subsection (2), the supervisory and compliance committee may suspend any member of the Board, or member of the credit committee, after having given the member an opportunity to be heard by the supervisory and compliance committee. (4) On the completion of the investigation or review referred to in subsection (2), if the supervisory and compliance committee considers that the Board, a director, the credit committee or an officer or employee engaged by the Board, has taken any action or decision which is not in accordance with this Act, the Regulations or the bye-laws, then, after consultation with LheRegistrar, the supervisory and compliance committee may- (a) suspend the officer, by a unanimous vote ofall the members of the supervisory and compliance committee taken at a meeting of the supervisory and compliance committee, called for the purpose of considering the officer's suspension; and (b) convene a special general meeting of the co-operative society, to consider whether to remove the officer in light of the action or decision taken by thc officer. (5) Where the Board or a Board member, the credit committee or a member ofthat committee, or an officer or employee engaged hy the Hoard has been suspended by the 114 Act 8 Co-operative Societies 2011 supervisory and compliance committee in accordance with subsection (4), the committee shall convene a date, not more than twenty-one days after the suspension, a special general meeting of the society- (a) for the purpose of reviewing the suspension; and (b) to consider whether to remove the officer, in the light of the action or decision taken by the officer. (6) Without prejudice to the requirements of section 46, not less than ten days before the date of a meeting of the supervisory and compliance committee called as mentioned In subsection (4), or the date of a special general meeting of the co-operative society convened as mentioned in subsection (4) or (5), the supervisory and compliance committee shall give written notice of the meeting to the Registrar and to the officer concerned. (7) At a special general meeting of a co-operative society held under this section, the members of the co-operative society, according to the purpose or purposes for which the meeting was convened, may, by secret ballot-- (a) ratify the suspension of the officer concerned, and remove the officer from office; or (b) rescind the suspension of the officer, but an officer shall not be removed from office without being given an opportunity to be heard by the members present at the meeting. 2011 Co-operative Societies Act 8 115 - (8) Where an officer of a co-operative society is removed from office at a special general meeting under subsection (7), the vacancy caused by the removal, shall be filled in such manner as may be dctennined by the meeting.

69 — The supervisory and compliance committee shall meet Meetings ofthe

69. The supervisory and compliance committee shall meet Meetings ofthe at least once every month, and shall meet the Board at least ~~:;i:~ and four times in every year, to review the Board's performance committee. of its functions.

70 — When a member of the supervisory and compliance Removal of

70. When a member of the supervisory and compliance Removal of , committee f ai'I s to attend thr ec consecutrve . meetings , f h rnembcr of 0 t e supervisory and supervisory and compliance committee without, in the compliance ., opinion 0 f t he supervisory ' and comp I'lance committee, . committee by the committee. reasonable cause, or fails to perform any of the duties allotted to the supervisory and compliance as a member of the supervisory and compliance committee, the mcm ber's position on the supervisory and compliance committee may be declared vacant by the remaining members ofthe supervisory and compliance committee, who may appoint a qualified person to fill the vacancy until the next annual general meeting of the co-operative society. 71.--( 1) The members of a co-operative society may, by Removal of resol~tion passed by two-thirds of the votes cast at a general ~l~~~~~~~~and meeting duly called for that purpose, remove a mem ber of a compliance supervisory and compliance committee before the expiration ~e:~:~:c by of his or her term of office, and shall by vote cast at the meeting, c1ect another member in his stead for the unexpired portion of his or her term, (2) The notice calling the meeting of members referred to in subsection (l), shall state that the purpose ofthe meeting is to remove the member of the supervisory and compliance committee who is named in the notice. 116 Act 8 Co-operative Societies 2011 (3) A member of the supervisory and compliance committee removed under this section, shall have the right to make such representations to the members at a general meeting, regarding the resolution for his or her removal as he or she may think Iit, and may be represented ar the general meeting by an attorney-at-law or an agent. Election of directors. 72.--(1) Subject to section 73 and to the Regulations- (a) the election of directors shall take place annually at the annual general meeting; (b) the directors shall hold office until the conclusion of the meeting at which their successors are elected, and shall be eligible for re -election; (c) where the number of nominees exceeds the number uf directors to be elected, the election of directors may be by secret ballot; (d) every member shall have the right to vote for the number of directors to be elected, and any voting sheet that contains the names of more than the number to be elected, shall be void; (e) where there are vacancies on the Board. but the remaining directors constitute a quorum, they shall call a special meeting of the Board for the purpos.e of appointing members to fill any such vacancy until the next annual general meeting; and (f) where there is a vacancy on the Board, and there is not a quorum of directors, the remaining directors shall call a special 2011 Co-operative Societies Act 8 II7 meeting of the co-operative society, for the purpose of electing members to fill any vacancy. (2) Where an election of directors required by this Act, the Regulations or the bye-laws does not take place at the proper time, the directors then in office, shall continue in office until their successors are elected. (3) Subject to sections 216( 1) and 220, not more than one-third ofthe directors may be employees of a co-operative society. (4) Unless a reasonable excuse is recei ved in wnting by the meeting, a person shall not be elected as a director, if the person is not present at the meeting at which the election is being conducted. (5) Subject to section 52(3), the Board shall consist of such numbers as may be fixed by the bye-laws. 73.---(1) Subject to subsection (3), the directors of a Tenure or directors and co-operative society shall be elected for a term ofthree years. members of elected committees. (2) A person shall not serve as a director of a co-operative society for more than six consecutive years, but thereafter, the pexson will become eligible for re-election after the expiration of one year out of office. (3) After the commencement of this Act, on the formation of each new society, or on the reconstitution of a previously registered co-operative society, at the next annual general meeting or members the election of the Board, the supervisory and compliance committee and the credit committee shaH he on a rotational basis as follows' 118 Act 8 Co-operative Societies 2011 (a) at least one-third shall be elected to serve for one year; (b) at least one-third shall be elected to serve for two years; and (c) the remainder shall be elected to serve for three years, and thereafter, each elected member of the Board, the supervisory and compliance committee and the credit committee, shall serve for a term of three years. Additional powers of the 74.---{I) Subject to the bye-laws and the Regulations, the Board. Board may, without authorization of the members of a co-operative society- (a) borrow money 011 the credit of the co-operative society; (b) issue, re-issue, sell or pledge debt obligations of the co-operative society; (c) give a guarantee on behalf of the co-operative society, to secure performance of an obligation of any person; and (d) mortgage, charge, hypothecate, pledge or otherwise create a security interest in all or any property of the co-operative society, owned or subsequently acquired, to secure any debt obligation of the co-operative society. (/) A sale , lease, exchange of all or substantially all of the property of a co-operative society, other than in the 20lJ Co-operative Societies Act 8 119 ordinary course of business of the co-operative society, shall be approved by the members in a marmer provided in subsections (3) to (7). (3) The Board shall send in the manner provided in section 46, a notice of a special meeting to consider the sale, lease or exchange mentioned in subsection (2) to each member. (4) The notice mentioned in subsection (3), shall be accompanied by a copy or summary of the agreement of sale, lease, or exchange mentioned in subsection (2). (5) At a special meeting held under this section, the members may, by special resolution- (a) authorize the sale, lease or exchange mentioned in subsection (2); and (b) agree to, or authorize the directors to agree to any terms and conditions of sale, lease or exchange. (6) Each member of the co-operative society has the right to vote with respect to sale, lease Or exchange mentioned in subsection (2). (7) A sale, lease or exchange mentioned in subsection (2), is adopted when the members of the co- operative society have approved the sale, lease or exchange by a special resolution.

75 — The act ofa director or officer is valid, notwithstanding Validity of acts

75. The act ofa director or officer is valid, notwithstanding Validity of acts an irregularity in his or her election or a defect in his Or her of?irectors and . . oftlcers. appomtment or qna\\nc71tlon 120 Act 8 Co-operative Societies 20/1 Indemnification 76.-(1) Subject to subsections (2) and (3), a co-operative of directors and officers. society may indemnify~ (a) a director or officer of the co-operative society: (b) a former director or officer ofthe co-operative society; and (c) a person who acts or has acted at the request of the co-operative society, as a director OJ officer of a body corporate, of which the co-operative society is, or was, a member or a creditor, against costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by that person with respect to a civil, criminal or administrative action or proceeding, to which that person is made a party by reason of the person being, or having been, a director Or officer of the co-operative society or the body corporate. (2) A co-operative society may indemnify a director, officer, 0. other person referred to in subsection (1), only where that person- (a) acted honestly and in good faith with a view to the best interest ofthe co-operative society; and (b) in the case of a criminal, civil or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing that the conduct was lawful. 2011 Co-operative Societies Act 8 121 (3) A co-operative society shall not indemnify a director, officer or other person referred to in subsection (1), with respect to an action by or on behalf of the co-operative society, to obtain a judgment in its favour, to which the person is made a party by reason of the person being, or having been, a director or an officer of the co-operative society, against costs, charges and expenses reasonably incurred by the person in connection with the action unless- (a) the co-operative society has the approval of the court; and (b) the person fulfils the conditions described in subsection (2). (4) Notwithstanding subsections (1) to (3), a co-operative society shall indemnify a director, officer or other person referred to in subsection (I), who has been substantially successful in the defence of a civil, criminal or administrative action or proceeding to which the person is made a party, by reason of the person being, or have been, a director or officer of the co-operative society or body corporate, against costs, charges and expenses reasonably incurred by the person with respect to the action or proceedings. (5) A co-operative society or a director, officer, or other person referred to in subsection (l) may apply to the court for an order approving the indemnity and the court may make the order. (6) On an application under subsection (5), the court may order notice to be given to an interested person, and that interested person is entitled to appear and be heard, in person, or by an attorney-at-law. 122 Co-operative Societies 2011 Duty of care of directors and

77 — Every director and officer of a co-operative society, in

77. Every director and officer of a co-operative society, in officers. exercising his or her powers and discharging his or her duties shall- (a) act honestly and in good faith with a view to the best interests of the co-operative society; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances, and shall be liable to make good any loss or damage suffered by the co-operative society, as a direct or indirect result of a contravention of this section. Ambit of duty.

78 — The provisions of a contract, the bye-laws or the

78. The provisions of a contract, the bye-laws or the circumstances of his or her appointment, do not relieve a director from- (a) the duty to act in accordance with this Act and the Regulations; or (b) liability, that by virtue of a rule of law would otherwise attach to him or her, with respect to negligence, default, breach of duty or breach of trust of which he or she may be guilty, in relation to the co-operative society. Liability of directors. 79.---(1) Where directors vote for, or consent to, a resolution authorizing, or approving by any other mcans-- (a) the purchase of shares of another co-operative society contrary to section 100; (b) the payment of a dividend on shares contrary to section l29; 2011 Co-operative Societies Act 8 123 (c) the payment of a bonus contrary to section 129; (d) a loan or guarantee, or the giving of financial assistance contrary to section 121, (e) a payment of an indemnity described in section '/6 to a director or a former director, without the approval of the court required by section 76(3); or (f) an act not consistent with the purpose of the co-operative society as set out in its bye-laws, and with respect to which the co-operative society has paid compensation to a person, they are jointly and severally liable to make good any loss or damage suffered by the co- operative society. (2) On the application of a director, the court may declare whether or not, having regard to any circumstances the court may consider appropriate- fa) the co-operative society is insolvent or (b) the payment of a bonus or dividend, or the lending of money, would make the co-operative society insolvent. (3) The liability imposed by subsection (1) is 111 addition to, and not in derogation from, a liability imposed on a director by any other enactment or law. (4) Subject to subsection (5), for the purpose of this section, a director who is present at a meeting of directors or 124 Act 8 Co-operative Societies 2011 of a committee, shall be deemed to have cast a vote in favour of a resolution, or of granting the approval mentioned in subsection (1), unless- (a) the director's dissent is entered in the minutes of the meeting; or (b) the director's written dissent is- (i) delivered to the secretary of the meeting before its adjournment; or (ii) delivered or sent by registered mail to the registered office of the co-operative society, immediately after the adjournment of the meeting. (5) A dircetor who votes for or consents to a resolution mentioned in subsection (1), is not entitled to dissent under subsection (4). (6) Where a director is not present at a meeting of directors or of a committee at which a vote, resolution or approval mentioned in subsection (1) is cast or given, the director shall be taken to have cast an affirmative vote, consented to the resolution or given approval, unless, within fourteen days after becoming aware of the proceedings, the director delivers or sends by registered mail, his or her written dissent to the registered office of the co-operative society. (7) On receipt of a written dissent, the secretary of the co-operative society shall- (a) certify on the written dissent the date, time and place it is received; and 2011 Co-operative Societies Act 8 125 (b) keep the written dissent in the minutes of the meeting at which the resolution was passed. (R) An action to enforce a liability imposed in subsection (1), shall not be commenced after two years from the date of the meeting at which the vote, resolution or approval was taken or gi veu, (9) In an action to enforce a liability imposed in subsection (L), the Court may, on the application of the co-operative society or a defendant- (a) join, as a defendant, a person who received a benefit as a result of the resolution complained of; and (b) make the person mentioned in paragraph (a), liable to the co-operative society jointly and severally, with the directors, to the extent of the amount paid to the person. (10) A director shall not be liable under subsection (1) where the director- (a) proves that he or she did not know or could not reasonably have known, that the act authorized by the resolution was contrary to this Act; (b) relies and acts in good faith- (i) on statements of facts represented to bim or her by an officer of the co-operative society, to be correct; or 126 Act 8 Co-operative Societies 2011 (ii) on statements contained in a written report or opinion of the auditor of the co-operative society, or a professional person engaged by the co-operative society, who is competent to give advice in respect to the matter. (11) A director who is found liable under subsection (l), is entitled to apply to a court for an order compelling a member or other recipient to payor deliver to the director, any money or property that was paid or distributed to the member, or other recipient, contrary to section 100, 121 or 129. (12) In connection with an application under subsection (11), and where the court is satisfied that it is equitable to do so, it may- (a) order a member or other recipient, to payor deliver to a director, any money or property that was paid or distributed to the member or other recipient contrary to section 100, 121 or 179; or (b) make an order, other than that described in paragraph (a), that it considers appropriate. Misuse of confidential 80.--(1) A director, officer, committee member or information. employee, or an associate of a director, officer, committee member or employee, who, in connection with a transaction relating to shares ofa co-operative society or a debt obligation of a co-operative society, makes use of confidential information for the benefit or advantage of himself or herself 20Il Co-operative Societies Act 8 127 or an associate that, if generally known, might reasonably be expected to affect, materially, the value of the share or the debt obligation- (a) is liable to compensate any person for a direct loss suffered by the person as a result of the transaction, unless the information was known, or reasonably should have been known to the person, at the time of the transaction; and (b) is accountable to the co-operative society for any direct benefit or advantage received or receivable by him or her, or his or her associate, as a result of the transaction. (2) Subject to subsection (3), a person who has acquired confidential information concerning a co-operative society or a member of a co-operative society- (a) as a director, conunittec member, officer, employee or auditor of the co-operative society; (b) as a liquidator, receiver or manager, of the co-operative society; or (c) as a Registrar, an officer or staff referred to in section 5, shall not disclose that information, except as permitted under subsection (3), or use that information for any personal benefit not related to the duties through which the information was acquired. (3) Subsection (2) does not apply to the giving of confidential information- 128 Act 8 Co-operative Societies 2011 (a) where the information is given in the course of that person's duty; (b) where the information is a general credit rating ofa person that IS supplied by a director or employee of the co-operative society, following a bona fide business request; (c) where the information relates to a member of a co-operative society and is given, with the written authorization of that member, or his or her legal representative; (d) where the information relates to a co-operative society and is given with the written authorization ofthe eo-operative society, or its legal representative; or (e) where the information is required to be disclosed by law or by an order of the Court. (4) A person who contravenes subsection (2) commits an offence, and is liable, on summary conviction, to a fine not exceeding ten thousand dollars, or to imprisonment for a term not exceeding one year, or to both. Declaration of irneiests. 81.--(1) A director, committee member or employee of a co-operative society who- (a) is a party to a material contract or proposed material contract with the co-operative society; or 130 Act 8 Co-operative Societies 2011 Disclosure of interests at

82 — (1) If a director, committee member or employee of

82.-(1) If a director, committee member or employee of meetings. a co-operative society has any pecuniary interest, direct or indirect, in any contract, proposed contract or other matter, and is present at a meeting ofthe co-operative society, Board or committee at which the contract, proposed contract or other matter is the subject of consideration, he or she shall, at the meeting, and as soon as practicable after its commencement, disclose the fact and shall not take part in the consideration or discussion of the contract, proposed contract or other matter or vote on any question WIth respect to It and shall be excluded from the meeting for the duration of the consideration, discussion and voting procedure. (2) A person who fails to comply with the provisions of subsection (1), commits an offence, and is liable (a) on summary conviction, to a fine not exceeding twenty thousand dollars or to imprisonment for a term not exceeding 2 years, or to both; or (b) on conviction on indictment, to a fine not exceeding fifty thousand dollars or to imprisonment for a term not exceeding 2 years, or to both, unless the person proves that he or she did not know that the contract, proposed contract, or other matter in which he or she had a pecuniary interest, was the subject of consideration at that meeting. (3) A disclosure under subsection (1) shall be recorded in the minutes of the meeting of the co-operative society, Board or committee. 2011 Co-operative Societies Act 8 133 85.-----( 1) Subject to the bye-laws, the directors may meet Meetings of . h h °d . directors at any p1ace, an d on any notice t at t ey consi er appropnatc. generally (2) The president- (a) may call a meeting of directors at any time; and (b) on the written request of at j cast two directors, shall call a meeting within fourteen days of the receipt of the request. (3) A majority of the directors shall constitute a quorum at any meeting of directors (4) Subject to the bye-laws, a notice of a meeting of directors may specify the purpose of the meeting or other business to be transacted at the meeting. (5) For the purpose of subsection (4), attendance of a director at a meeting of directors, is deemed to be a waiver of notice of the meeting, unless the director attends the meeting for the express purpose ofobjecting to the transaction of any business, on the ground that the meeting is not lawfully called. (6) Where the time and place of an adjourned meeting is announced at the original meeting, notice of an adjourned meeting of directors is not required to be given tu thc directors present at that meeting, but shall be given to any directors not so present. 86.----(1) Subject to the bye-laws, where all the directors Meetings by consent, a meeting of directors or ofa committee may be held telephone, etc. by means of- (a) a telephone system; and 132 Act 8 Co-operative Societies 2011 (c) he or she or his or her partner, is a professional adviser La a pt:rsull whu bas a direct or indirect pecuniary interest in a contract, proposed contract or other matter. (2) Subsection (1) does not apply to membership of, or employment under any public body. (3) In the case ofmarried persons, the interest of one spouse shall be deemed for the purpose of section 82, to be also the interest of the other. Removal or 84.---( 1) Section 82 does not apply to an interest in a exclusion of disability. contract, proposed contract, or other matter which a director, committee member or employee of 8 co-operative society has, as a member of the public, or to an interest in any matter relating to the terms on which the right to participate in any service, is offered to the public. (2) Where a director, committee member or employee of a co-operative society has an indirect pecuniary interest in a contract, proposed contract or other matter by reason only ofa beneficial interest, in securities ofa company or other body, and the nominal value of those securities does not exceed five thousand dollars, or one-thousandth of the tota1nominal value of the issued share capital ofthe c-ompany or other body, whichever is the less, and ifthc share capital is of more than one class, the total nominal value of shares of anyone class in which he or she has a beneficial interest, docs not exceed one-thousandth of the total issued share capital of that class, section 82 shall not prohibit him or her from taking part in the consideration or discussion of the contract, proposed contract, or other matter, or from voting on any question with respect to it, without prejudice, however, it is his or her duty to disclose his or her interest. 134 Act B Co-operative Societies 2011 (b) a communication facility other than a telephone that permits all persons participating in the meeting to hear and speak to each other. and a person so participating, is deemed to be present at that meeting. (J) Unless this Ad, the Regulations or the bye-laws require a meeting, a resolution ofthe directors may be passed without a meeting where- (a) all the directors consent to the resolution in writing; and (b) the consent is filed with the minutes of the proceedings of the directors. Attendance at meetings. 87.--{1) A director of a co-operative society is entitled to receive notice of, and to attend and be heard at every general meeting of members. (2) Where a c1irector- (a) resigns; (b) receives a notice or otherwise learns of a meeting ofmembers called for the purpose of removing him or her from office; or (c) receives a notice, or otherwise learns of a meeting of directors or members at which another person is to be appointed or elected to fill his or her office, whether because of the director's resignation or removal, or because his or her term of office has expired or is about to expire, 2011 Co-operative Societies Act 8 135 the director is entitled to submit to the co-operative society, a written statement giving the reason for ills or her resignation, or the reasons he or she 'opposes any proposed action or resolution. (3) A co-operative society shall immediately send a copy of the statement mentioned in subsection (2), to the Registrar, and shall make available a copy ofthe statement to every member. (4) A co-operative society, or person acting on its behalf, shall not incur any liability by reason only of circulating a director's statement sent in compliance with subsection (3). 88.--( 1) The directors shall hold a meeting within ten days Organizational after the issue of the co-operative society's certificate of meeting of • • dlrC~10TS, registration . (2) The directors may, at the meeting mentioned in subsection (l}- (a) pass resolutions establishing policies of the co-operative society; (b) adopt forms of corporate records; (c) appoint officers; (d) authorize the issue of securities; (e) appoint an auditor to hold office until the first general meeting of the members; (t) make banking or other financial arrangements; (g) appoint authorized signing officers; 136 Act 8 Co-operative Societies 2011 (h) adopt operating policies; and (i) transact any other business. (3) A director may call the meeting of directors mentioned in subsection (I), by giving not less than Jive days' notice of the meeting to each director, stating the time and place of the meeting. (4) The notice mentioned in subsection (3) may be waived. where all directors are in attendance at that meeting of directors. Directors 89.----(1) A director ceases to hold office when he or she--· ceasing to hold office. (a) resigns; (b) dies; (c) fails to attend three consecutive meetings without an accepted excuse; (d) fails to perform any duties allotted to him or her as a member of the Board; (e) is removed in accordance with section 90; or (f) is no longer qualified in accordance with this Act. (2) A resignation of a director becomes effectivc- (a) with immediate effect, where that person indicates to the members present at an annual general meeting, that he or she is resigning; (b) at the time specified in a written resignation; or 2011 Co-operative Societies Act 8 137 (c) where no time is specified in a written resignation, at the time the resignation is received by the cooperative society. 90.--(1) Subject to the Regulations and the bye-laws, the Removalof . may, by specu.al reso Iuti . SOCIety members of a co-operative uuon, riirectors.. remove any director from office. (2) A vacancy created by the removal of a director, may be filled at the meeting of the members at which the director is removed, or where not so filled, may be filled under section 72(1)(e). 9L--{1) Within thirty days after a change is made in its Notice of ' d Hectors, . society a co-operatrve . sh a II sen d to the R ' egistrar, a change of directors notice in the prescribed form setting out the change, and the Registrar shall file the notice. (2) Notwithstanding subsection (1), where a co-operative society sends the annual return in accordance with section 147, within thirty days after a change is made in its directors, it is not required to send the notice required by this section.

92 — A co-operative society may, by resolution passed by a Declaration by

92. A co-operative society may, by resolution passed by a Declaration by directors and majority of the members at an annual or special meeting, officers. require all. directors and officers to sign annually or at any other time that may be specified in the resolution, a declaration relating to- (a) faithful performance of duties; (b) secrecy of transactions with members; and (c) faithful and loyal support of the co-operative society. 138 Act 8 Co-operative Societies 2011 Bonding.

93 — The directors shall require that every person appointed

93. The directors shall require that every person appointed to an office that receives, manages or handles goods, merchandise or money on behalf of the co-operative society, shall give to the directors, before entering on his or her duties as ,tJI officer, security or a bond in such amount as they may require. Rc;uaw.t:1 atiou of directors.

94 — (1) A co-operative society shall not pay any

94.-(1) A co-operative society shall not pay any remuneration directly Orindirectly to a director or committee member, in connection with his or her duties, or for any service performed by that person in that capacity. (2) Nothing in subsection (1) shall be regarded as prohibiting the reimbursement of expenses~ (a) which are necessarily incurred by a director or committee member in the course of pcrfonning any service on behalf, or for the benefit, of the co-operative society; and (b) which are approved by a majority of the directors voting at a meeting of the Board. (3) Nothing in subsection (l) shall be regarded as prohibiling any director or committee member of a co-operative society, acting, not as a director or committee member, but in his or her professional capacity, from tendering for the supply of, and if successful, being paid for supplying, goods or services to the co-operative society. (4) The directors may be granted such honorarium as- (a) may from time to time be approved prior to its payment, or the payment of any part thereof, by the members. in a general meeting; and 2011 Co-operative Societies Act 8 139 (b) does not exceed an amount recommended by the Board, and approved by a general meeting of the members. (S) A co-operative society may purchase and maintain insurance for the benefit of a director, member of a committee, officer or employee, against a liability, loss and damage incurred by that person while serving the co-operative society as a director, officer, committee member or employee.

95 — Subject to section Y4 and the bye-laws, the directors Remuneration

95. Subject to section Y4 and the bye-laws, the directors Remuneration shall fix the salary of any employees appointed by the emp Ofoffil,cers and oyces. directors, and shall approve a scale of remuneration for all employees of a co-operative society. PART V FlNANCINO 96.---{l) A co-operative society may sell equity shares to Shares. its members only, but these shares shall be non-withdrawable, but redeemable in accordance with the Regulations, and the shares shall have a par value fixed by the bye-laws. (2) Unless a co-operative society is required by this Act or any other enactment to limit its number of shares, it shall have an unlimited number of shares. (3) A share in a co-operative society is personal property, and a shareholder is entitled to an annual statement showing the number of shares that he or she owns. 97.-··( 1) A co-operative society shall express its share Sharecapital. capital in it!'; bye-laws as- 140 Act 8 Co-operative Societies 2011 (a) an amount of money divided into a specified number of shares set out in the bye-laws; or (b) an amount comprising an unlimited number of shares with a specified par value. (2) A co-operative society shall issue qualifying shares as well as equity shares, provided that the value of the qualifying shares and equity shares owned by the members, shall not fall below the equivalent often per cent of the asset worth of the co-operative society, as a result of any redemption of shares. (3jI'he Registrar shall grant such period oftime, not exceeding three years from the commencement of this Act, as the Registrar considers reasonable, to enable an existing society to make good any deficiency in the adequacy of its capita] base. Issue of shares.

98 — ( 1) Subject to subsection (2), a co-operative society

98.-( 1) Subject to subsection (2), a co-operative society may issue shares at any time and for any consideration that the directors consider appropriate. (2) Subject to the bye-laws, a co-operative society shall sell its shares at their par value. (3) A member shall not be liable to the co-operative society or its creditors, beyond the sum remaining unpaid on the member's subscription for shares. (4) A co-operative society shall not issue a share until it is fully paid- (a) m money; or 2011 Co-operative Societies Act 8 141 (b) in property that, in the opmion of the directors, is the fair equivalent of the money that the co-operative society would have received, if the share had been issued for money. (5) For the purposes of subsection (4)(b), when determining whether property is the fair equivalent of a money consideration, the directors may take into account reasonable charges and expenses of organization and reorganization and payment for property, reasonabl y expected to benefit the co-operative society. (6) For the purposes of this section "property" does not include a promissory note or a promise to pay. 99.---<1) Subject to the approval of the Registrar, a Alteration of co-operative society may, by special resolution, increase or cap. altthtaJ°rized . decrease its share capital and, for that purpose, may- (a) subdivide any shares; (b) consolidate shares into shares of a larger par value, but the par value ofconsolidated shares shall not be greater than one hundred dollars; (c) cancel any shares that, at the date of registration of the bye-laws, have not been subscribed for or agreed to be issued, and diminish the amount ofits share capital by the amount of the par value of the shares so cancelled; (d) extinguish or reduce the liability on any of its shares, with respect to share capital not paid up; 142 Act 8 Co-operative Societies 2011 (e) with or without extinguishing or reducing liability on any of its shares, cancel any paid up share capital that is lost or unrepresented by available assets; and (f) with or without extinguishing or reducing liability on any ofits shares and either with or without reducing the nwnber of such shares, payoff and paid-up share capital that is greater than the requirements of the co-operative society. (2) The Registrar may give his or her approval under subsection (L), where the Registrar is satisfied that-v- (a) the resolution will not contravene this Act; (b) the holders of all shares of the co-operative society affected by the proposed resolution, have approved the special resolution passed by the members at a general meeting called for the purpose; and (c) in the case of a special resolution providing for a reduction in the share capital of the co- operative society- 0) all creditors who arc liable to be affected, have been notified of the resolution, and have signified their approval; or (ii) appropriate steps have been taken by the co-operative society to adequately safeguard the interests of.its creditors. 2011 Co-operative Societies Act 8 143

100 — Subject to the approval of the Registrar, only a Limitation on

100. Subject to the approval of the Registrar, only a Limitation on . d . . regrstcre - co-operati vc society may pure lase I 1110rc I purchase of t ian shares. one- fifth ofthe shares ofanother co-operative society where- (a) that other co-operative society is insolvent; (h) the proposed purchase or acquisition would not render the purchasing co-operative society insolvent; or (c) subject to paragraph (b), the proposed purchase or acquisition would not, in the opinion of the Board, be detrimental to the financial stability of the purchasing co opcrati ve society. 101.---( I) A share may be transferred with the approval of Transfer of the Board to any person, but ifthe transferee is not a member, shores gcnerully he or she shall be approved as a member hy the Board, or by a general meeting, according to the bye-laws relating to the admission of members, before the transfer can he registered. (2) If the bye-laws require a member to hold more than one share, a transferee shall acquire, by the transfer, or by the transfer and allotment, the number so required to be held, before the transfer can be registered. (3) A transfer ofshares shall be effected in such form as the Registrar may determine. (4) A transfer of a share shall not be valid and effective unless, and until, such transfer has been registered by the Secretary on the direction of the Board. 144 AdS Co-operative Societies 2011 (5) A transfer of a share, if made by a member indebted to the co-operative society, shall not be registered without the written permission of the Board, and until the transfer is registered- (a) a right shall not be acquired against the co-operative society by the transferee; and (b) a claim of the co-operative society upon the transferor shall not be affected by the transfer. Transfer of 102'41) Where a member or person claiming through a shares of member of co-operative society, has become of unsound mind, or unsound mind. incapable of managing his or her affairs, and no committee, receiver or guardian has been appointed, the co-operative society may, subject to this section and section 101, transfer the share or interest of such member to any person nominated by such member for the purposes of section 106 OT, may pay to the person nominated, a stun representing the value of the share or interest of such member ascertained ill accordance with subsection (5). (2) Subject to subsection (3), if'no nominee has been appointed, the co-operative society may pay a sum, representing the value of the member's share or interest to the Registrar of the Supreme Court. (3) if the value of the share or interest does not exceed one hundred dollars, the Board may, subject to any conditions it thinks fit, pay the whole or any portion of such sum, to the person who appears to have the care of the member or the management of the member's affairs. 2011 Co-operative Societies Act 8 145 (4) All transfers and payments made by a co-operative society in accordance with this section, shall be valid and effective against any demand made upon the co-operative society by any person. (5) For the purposes of this section and section 100, the value of any share or interest shall be represented by the sum actually paid for that share or interest by the member holding it, unless the bye-laws of the co-operative society otherwise provide. (6) Where the benefits group insurance have accrued on such share or interest, the value of such benefits shall be the amount actually received by the co-operative society, on the account of such deceased member.

103 — (1) On the death of a member of a co-operative Transferor

103.-(1) On the death of a member of a co-operative Transferor . . share or Interest SOCIety,where a person has been nominated by the member in on death or accordance with section 106. and the nominee is admitted to member. membership of the co-operative society, the co-operative society shall, within one year of the death ofthe member by whom the nomination was made, transfer the shares or interest of such deceased member to the nominee. (2) On the death of a member of a co-operative society, where a person has been nominated by the member in accordance with section 106, has not been admitted to membership of the co-operative society, or where the deceased member made no such nomination, the co-operative society shall, within one year ofthe death of the member, pay either to the nominee or to the legal personal representative of the deceased member, such sum as represents the value or part thereof, ofthe deceased member's share or interest in the co-operative society. 146 Act 8 Co-operati ve Societies 20ll (3) Nothing in this section shall be construed as prohibiting a nominee who has been admitted to membership, from electing to receive payment representi ng the val ue ofthe deceased member's shares or interest, instead of accepting a transfer. (4) Where after a period of one year there is no nominee or legal personal representative of the deceased member to which the shares or interest may be transferred, or to which a sum representing the value or part thereof of the deceased member's share or interest may be paid, the share or interest shall be transferred to the development fund of the co-operative society. (5) The shares or interest transferred under subsection (4), shall remain in the development fund for a period not less than seven years, during which period it shall remain available to bona fide claimants, after which it shall constitute a part of the reserves of the co-operative society. (6) Subject to subsection (5) prior to the shares or interest constituting part of the reserves of the co-operative society, a notice of this transfer shall be published in the Gazette. Restrictions on 104. Shares or interest or any part thereof in the capital of transfer of shares. a co-operative society shall not be transferred, unless the transfer is made to a member thereof, or to a person whose application for membership has been accepted. Conditions for 105.~(l) Subject to the bye-laws, a transfer of shares in the validity of trnnsfcr of a co-operative society is not valid for any purpose lInless~ shares 2011 Co-operative Societies Act 8 147 (a) a written application for membership by the transferee is approved, and the transfer is authorized by- (i) a resolution of the directors; or (ii) a person authorized by a resolution of the directors to approve applications and transfers ofthat kind; and (b) notification of any approval given under paragraph (a), is sent to the transferee and his or her name has been entered on the register of members. (2) Notwithstanding subsection (1), a transfer of a share is valid for the purpose of providing evidence of the rights of the parties to the transfer between the transferor and the transferee. 106.~1) A member of a co-operative society may Power ot . nominate a person or persons to, or among whom, there shall nomination. be transferred at his or her death such property in the co-operative society, of which he or she is the owner, at the time ofhis or her death, or as may subsequently have accrued thereon, whether in shares, loans or deposits, or so much thereof as is specified in such nomination, if the nomination does not comprise the whole. (2) A nomination under subsection (1) shall be made by instrument in writing, signed by the member in the presence oftwo anesting witnesses, and either delivered at or sent to the registered office of the co-operative society during the lifetime of such member, or made in any book kept at the co-operative society's registered office. 148 Act 8 Co-operative Societies 20ll (3) A member of the co-operative society may nominate more than one person, only ifhe or she holds more than one share. (If) A nomination made under subsection (1), may be revoked or varied by a subsequent nomination, or by a similar document, in the nature of a revocation or variation, signed, attested and delivered, and sent or made in accordance with subsection (1), but any such nomination may not be revoked or varied by the will ofthc nominator, or by a codicil thereto. (5)Al1 nominations and all revocations or variations received by a co-operative society, shall be maintained in a separate record kept at the registered office of the co-operative society. PART VI BUSINESS OF CO-OPERATNE SOCIETY Marketing of 107.-(1) A co-operative society which has as one of its producethrough the co-operative objects the marketing of any article of produce obtained by society. the work or industry of its members may, by its bye-laws or otherwise contract with its members- (a) that every such member who produces any such article, shall market the whole or any specified amount, portion or description thereof to, or through the co-operative society; and (0) that any member who is proved or adjudged to have contravened the bye-laws, or to have acted inbreach of the contract,shall pay to the 2011 Co-operative Societies Act 8 149 co-operative society liquidated damages, in a sum ascertained or assessed in such a manner as may be prescribed in the bye-laws. (2) A contract entered into under this section, shall not be questioned in any court on the ground only that it is a contract in restraint of trade. 108.--{1) A person to whom money has been lent by a Creation of co-operative society, or who is otherwise indebted to the charge in favour co-operative society, may be required to create a charge in ~~~~perative favour of the co-operative society, in such form as may be society. prescribed in the Regulations. (2) A charge shall, so long as it continues in force, confer on the co-operative society~ (a) the right upon the happening of any event specified in the charge, as being an event authorizing the chargee to seize the property subject to the charge, to take possession ofany such property so subject; (b) after an interval of five clear days, or such less time as may be specified in the charge, from the date of taking possession of any property subject to the charge, to sell such property either by auction or, if the charge so provides, by private treaty, either for a lump sum or for payment by instalments; and (c) to apply the proceeds of sale in, or towards, discharge of the debt secured by the charge and the costs of seizure and sale, and to pay any surplus of such proceeds, to the member whose property was sold. 150 Act 8 Co-operative Societies 2011 (3) A charge shall, so long as it continues in force, impose on the charger, an obligation to pay to the co-operative society towards the discharge of his or her indebtedness, the proceeds of sale of any property comprised in the charge, or any money received under any policy of insurance, or by way of compensation in respect of any such property, except in so far as the charge otherwise allows. (4) A charge under this section is not a bill of sale within the meaning of the Bills of Sale Act. Execution and 109. - (1) A charge created under section 108, shall be registration of charge. duly executed if signed by the person in quintuplicate in the presence of- (a) the president of the co-operative society; and (b) the secretary of the co-operative society. (2) The secretary shall- (a) file one copy of the charge at the registered office of the co-operative society, and dellver one copy each to the Registrar of the Supreme Court, the Registrar of Co-operatives and the apex body; and (b) deliver one copy to the member. (3) The Registrar ofthe Supreme Court shall keep a book known as the "Co-operative Societies Charges Book", in which the Registrar shall register every charge delivered to the Registrar by the secretary of a co-operative society, and issue to the co-operative society, a certified copy of the registration. 2011 Co-operative Societies Act 8 151 (4) The registration ofa charge under subsection (3), shall be deemed to affect with notice, any person dealing with the property comprised in the charge. (S) Where a loan or other indebtedness in respect of which a charge was created, is discharged, the secretary ofthe co-operative society shaU~ (a) cause a document to that effect to be prepared in quintuplicate, and signed by the president and secretary of the co-operative society, indicating that the charge has been discharged; (b) file one copy of such document, deliver one copy each to the Registrar of Co-operatives and the Registrar of the Supreme Court who shall forthwith make an entry of satisfaction in the Co-operative Societies Charges Book; and (c) deliver One copy to the member. (6) A person may, on payment of the fee prescribed in the Regulations, inspect the Co-operative Societies Charge Book and take extracts from it. (7) A charge subsisting at the commencement of this Act in favour of a co-operative society, shall be deemed to be registered in the Co-operative Societies Charges Book, and any such charge shall, without prejudice to anything contained therein, have the same force and effect as a charge created under this Act. 11o. Nothing in section 108 shall affect- Claims unaffected by charge (a) any claim of the Government in respect of taxes or money recoverable as such, or of a landlord in respect of rent or money recoverable as rent; or 152 Act 8 Co-operative Societies zoit (b) the rights of any pnor charges or encumbrance. Prior claims in 111.--{l) Subject to <illyclaim in respect ofdebt due to the favour of co-operative Crown, or to a landlord in respect of rent or any money society. recoverable as rent, any debt or outstanding demand owing to a co-operative society by a member or past member shall, notwithstanding anything contained in section 109, be a first charge- (a) upon the crops or other agricultural produce, whether standing or severed, raised in whole or in part, with the loan from the co-operative society by such member or past member; and (b) upon any livestock, fodder for livestock, agricultural or industrial machinery or implements, or raw materials for use in manufacture or handicraft, or building used for the purpose of agriculture or industry, fishing or fish processing equipment to, or purchased by such member or past member, in guuds UJ muncy granted tu the member by the co-operative society. (2) A person dealing with any of the property specified in subsection (1), shall be deemed to have notice of sueh first charge, and all such dealing shall be subject to the charge and priority created by this Act. Enforcement of charge. 112.--{1) A co-operative society may enforce a charge, by applying to the magistrate ofthe District in which the member resides or carries on business, for a warrant of distress, by certifying under seal to the magistrate, the amount due and particulars ofthe property so charged, and the magistrate shall issue a warrant of distress and may offer the sale of the property by public auction or private treaty. 2011 Co-operative Societies Act 8 153 (2) A magistrate shall have jurisdiction under subsection (1), even though the amount due exceeds the limits of jurisdiction of a magistrate specified in the Magistrates Act. 113.---(1) A co-operative society may borrow from any Assignment of other co-operative society or from any bank approved by the charge. Registrar, on the security ofa charge executed and legi::;lereu in accordance with section 109, and may for this purpose assign the charge to the other co-operative society or bank. (2) An assignment of a charge under this section, shall be registered in the same manner as a charge, and section 109 shall apply, subject to any necessary modifications, to an assignment so registered. (3) An assignment of a charge when registered, shall operate as a first charge in favour of the assignee subject to section 110. (4) Where a charge is assigned to a co-operative society established with the object of facilitating the operation of other co-operative societies, the co-operative society may borrow from any bank approved by the Registrar, and for this purpose may re-assign any such charge to the bank. and subsections (2) and (3) shall apply, subject to any necessary modifications, to such reassigrunent. 114.~(l) A co-operative society may require a member or Bond as officer to give a bond with or without sureties, as additional ~~~~~~~~or security for the repayment of a loan. charge (2) Conditions imposed-on the member or officer relating to the payment of capital and interest under a charge or loan agreement, shall be strictly observed and performed by the member or officer, and on breach of any such condition, the bond shall be forfeited forthwith. 154 Act 8 Co-operative Societies 2011 (3) Section 113 relating to the assignment ofcharges, shall apply subject to any necessary modifications to the assignment of bonds. Lien em shares. 115.-{ I) A co-operative society shall have a lien on a share, or any amount outstanding to the credit ofa member or his or her legal representative, for a debt due by that member to the co-operative society. (2) A co-operative society may enforce a hen mentioned in subsection (1), in the manner set out in its bye-laws. (3) The Board may, in default of payment by any member indebted to a co-operative society, apply the sum paid up for the time being, on any shares held by that member in or towards the discharge of the debt so due, and of any expenses relating to the debt or its discharge, and the defaulting member shall cease to have any further claim in respect of such shares. Deductions 116. The bye-laws of a co-operative society may provide applied to loans and shares that the co-operative society- (a) may deduct an amount from the moneys it receives for the goods, products or services it has marketed, handled, or dealt in, for or on behalf of a member or non-member patron; and (b) may apply the amount prescribed in paragraph (a), towards a loan or the purchase of shares on such terms as the Hoard may determine. 2011 Co-operative Societies Act 8 155 117.~(1) Subject to section 115, a co-operative society Purchase of may purchase or otherwise acquire any of its shares that- shwts. (a) are available for compulsory purchase under section 119; or (b) MC offered for sale. (2) A co-operative society shall pay in cash, within one year of the date of purchase, for any shares purchased under subsection (l). (3) A co-operative society shall pay a purchase price for a share purchased under this section, equal to the par value ofthe share, together with any dividends declared, but unpaid, with respect to the share. (4) Subject to subsection (5), where a co-operative society purchases or otherwise acquires shares issued by it, those shares shall be deemed to be cancelled, (5) Where the bye-laws of a co-operative society limit the number of shares, any shares of the co-operative society purchased or otherwise acquired by the co-operative society, may be treated as unissued shares. 118.~-{1) Notwithstanding section 117, a co-operative Prohibition on society shall not purchase or otherwise acquire its shares shares. purchase of whcre-- (a) it is insolvent; (b) the proposed purchase or acquisition would render it insolvent; or 156 Act 8 Co-operative Societies 2011 (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 co-operative society. (2) Where a purchase Or other acquisition of shares under section 117 or 119, would, in the opinion of the Board, impair the financial stability of the co-operative society or would be contrary to the interest ofthe remaining members, the Board may suspend the purchasing or acquisition of shares. (3) The Board may not suspend the purchase of shares under 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. Compulsory sale

119 — Where

119. Where- of shares (a) winding-up proceedings have commenced with respect to a body corporate that is a member of a co-operati ve society; or (b) a memberofa co-operative society has, during a period of two years, failed to transact any business with the co-operative society, the co-operative society may, by written notice to the member, require the member to sell his or her shares to the co-operative society. 2011 Co-operative Societies Act 8 157 PART VII PROPERTY AND FUNDS OF CO-OPERATIVE SOCIETY 120.~(1) The Board shall establish written policies for Investment of investing for income, the accumulated funds of the funds. co-operative society not used in the primary business of the co-operative society, and shall ensure they are in compliance with legislative requirements. (2) Subject to subsections (3) and (4), the funds of a co-operative society, including the reserve, may be invested or deposited in- (a) any central credit union, central finance facility, deposit guarantee or stabilization fund for credit unions or co-operative societies, or other co-operative society registered under this Act; (b) shares or deposits in, loans to, or on the security of, any co-operative society with limited liability; (c) any financial institution licensed under the Banking Act, or any company registered under the Insurance Act, Cap 1SO; (d) any stock, debentures, funds or securities issued by the government; (e) securities, the payment of interest on which is guaranteed by the government; 158 Act 8 Co-operative Societies 2011 (1) secunnes issued in a CARICOM Member State by a company incorporated in that Member State, and listed by the stock exchange of a CARICOM Member State, if the company has paid dividends on its shares for the preceding five consecutive years; (g) securities issued in a CARICOM Member State by a credit union that is registered in a CARICOM Member State, in accordance with the laws of that CARlCOM Member State; (h) real property, but subject to the provision of section 199(5), where the co-operative society is a credit union; and (i) any other manner permitted by the Registrar. (3) The investments referred to in subsection (2) (d), (e), (1), (g) and (1), shall not exceed in aggregate, ten per cent of the unimpaired capital of a credit union. (4) The equity investment of a co-operative society in any entity, shall be limited to twenty percent of the equity investment of that entity. (5) A society shall not invest the funds referred to in subsection (2), in a single institution or instrument. Loan by credit union.

121 — (1) The Board ofa credit union, or a central credit

121.-(1) The Board ofa credit union, or a central credit union or central co-operative society, shall establish written policies for the consideration, approval and administration of loans, guarantees, advances and other forms of financial assistance, as a primary service to its members. 2011 Co-operative Societies Act 8 159 (2) Except for a loan to another co-operative society, a loan shall not be made to a member by a co-operative society not included in subsection (1), and a loan shall not be made by a co-operative society mentioned in subsection (l), to a person who is not a member of that co-operative society. (3) A loan shall not be made by a credit union to a director, committee member, or employee ofthe credit union, of a sum in excess of the aggregate value of his or her shares, deposits and accumulated dividend and interest thereon, unless adequate security is provided for the amount of the loan in excess of that value. (4) A loan shall not be made to a director, committee member or employee referred to in subsection (3), on any terms relating to interest rates, discounts or waivers, Of on any other terms more favourable than those offered to the general membership. (5) A loan shall not be made to a director, committee member or employee referred to in subsection (3), if when combined with all other outstanding loans to persons referred to in subsection (3), the persons' business interest or the persons' immediate family, it exceeds twenty pef cent of the credit union's net worth. (6) Unless with the prior approval of the Registrar, a loan shall not be made by a credit union to a member or a group of related members, if the loon would cause the aggregate amount of loans to the member or the group of related members, to exceed ten per cent of the share capital. (7) In accordance with section 82, a director, committee member or employee of a credit union shall declare his or her interest in a loan at a meeting in which the 160 Act 8 Co-operative Societies 2011 loan is to be discussed, and shall not be present or be present at, Or participate in a meeting, when his or her application for a loan is being considered. (R) Any loan made in contravention of thjs,edion shall be void and shall be repaid to the co-operative society immediately. (9) Subject to the other provisions ofthis section, the bye-laws of a credit union shall provide for limits on the amounts of loans to anyone member, or on any type of loans. Prohibited 122. Subject to this Act, a co-operative society shaIl not, loans. directly or indirectly, give a loan, guarantee Orother means of financial assistance- (a) to a member, director, officer, committee rncrnber or employee of the co-operati ve society or an associ ale of any such person, for any purpose; or (b) to any person for the purpose at: or in connection with, the acquisition of membership ofthe co-operative society, or the purchase of a share issued, or to be issued by the co-operative society or member, where there are reasonable grounds to believe that the co-operative society is insolvent or would, after giving the financial assistance, be insolvent. Receipt of loans end deposits.

123 — (1) Subject to the provisions of any bye-laws of a

123.-(1) Subject to the provisions of any bye-laws of a co-operative society made for the purpose, a co-operative society, may receive loans, grants and donated capital from persons or institutions that are not members of the 2011 Co-operative Societies Act 8 161 co-operative society for the purpose of meeting any of its obligations or discharging any of its functions under this Act. (2) A co-operative society may, by mortgage or in any other manner it deems appropriate, guarantee the repayment of any sums received by it under subsection (I). (3) Deposits shall be accepted in the manner and form, and subject to any conditions that may be prescribed in the Regulations. 124.--(1) A co-operative society may receive deposits from Receipt of a minor, and pay to such minor" such deposit , together with minors deposits from the interest accrued thereon. (2) Any deposit made on behalf of a minor may, together with any interest accrued thereon, be paid to the parent of the minor or, where the minor is under the care of a guardian, to such guardian, for the use of the minor. (3) The receipt of a minor, or his or her parent or guardian, for money received under this section, shall be a good and sufficient discharge of the liability of the co-operative society, in respect of that money. (4) Where a person under a legal disability, other than minority, is entitled to receive money from a co-operative society such money may be paid by the co-operative society, to the Registrar of the Supreme Court, to the credit of such person under such disability, and the receipt ofthe Registrar of the Supreme Court, or ofthe person under disability, shall be good and sufficient discharge ofthe liability of the co-operative society to pay that money. (5) The Registrar of the Supreme Court may, retain out of any money so paid to him or her a sum not exceeding one per cent thereof for fees of office, and shall payor apply 162 Act 8 Co-operative Societies 2011 the remainder to or for the care, maintenance, education or benefit or the person under disability. Allocation of (,;lITJllul.; 125.--(1) Whcre a co-operative society realises a surplus in a financial year, before it allocates among or credits to members the surplus, the directors- (a) shall use any part of the surplus that the co-operative society will require, to refund all or any part of a deficit it has previously incurred; (b) shall establish and maintain a reserve to be known as its statutory reserves; and (c) may provide, out or any surplus remaining after paragraphs (a) and (b) have been complied with, in the manner set out in its bye-laws for payment out of the surplus, dividends on members' equity shares. (2) The statutory reserves required by subsection (l )(b) shall be part of the institutional capital of the co-operative society and may, subject to the approval of the Registrar, be used in the business of the co operative society, including unforeseen losses, unexpected shortfalls in liquid cash, capital retention, improved earnings, financing of non-earning assets, repair and maintenance, and the avoidance of external borrowing. (3) A co-operative society shall ensure that its statutory reserves and other institutional capital reserves are, at no stage, less than ten per cent of its total assets. (4) If at the end of any financial year, the amount standing to statutory reserves before any transfer under this section, IS less than ten per cent of total assets, the 2011 Co-operative Societies Act 8 163 co-operative society shall transfer to statutory reserves for that year, not less than twenty per cent of its surplus, or such lesser sum as may be required, to increase the statutory reserves to ten per cent of total assets. (5) Where at the end of any financial year, the amount standing to statutory reserves before any transfer under this section is more than ten per cent oftotal assets, the co-operative society may not make any transfer to statutory Te<;erves (6) The Registrar shall grant such period of time as the Registrar considers reasonable, to enable management to make good any deficiency in the adequacy of its capital base. 126.---{ 1) A co-operative society shall establish and n".dupmem main tain a development fund, whi ch may include any existing fund. education fund or educational reserve. (2) A co-operative society that realizes a surplus from its operations as ascertained by the annual audit, shall make such annual contribution to its development fund as determined by the apex body, not exceeding ten per cent of that surplus, and such fund shall be used for strengthening the capacity and growth of co-operative societies and for human resource development. (3) Subject to subsection (4), a co-operative society's development fund shall be administered in part or in who Ie by the apex body, in accordance with its bye-laws. (4) Where an apex body has not been established or is not functioning as such, the development fund shall be administered by such person or body of persons as the Registrar may determine, with the approval of the active co-operative societies. 164 Act 8 Co-operative Societies 2011 Pension fund 127.--(1) A co-operative society may establish a contributory pension fund for its servants and employees, and may contribute to such fund. (2) A pension fund established under subsection (1), shall not be considered part of the assets of the co-operative society, but may be invested in such manner as may be prescribed by the bye-laws. Charitable contr-ibutions.

128 — After making the prescribed payments to its statutory

128. After making the prescribed payments to its statutory reserve and development fund, a co-operative society, may contribute to any non-profit, charitable, benevolent, community, co-operative or cultural improvement purpose. Dividend or bonus. 129.--( 1) Subject to this section and sections 125 and 126, any surplus may be distributed by way of dividend or bonus amongst its members, in proportion to their business with the co-operative society. at such rate as may be prescribed. (2) A co-operative society shall not~ (a) declare or pay a dividend or bonus, or distribute any part of its accumulated funds, before the financial statements have been certified by a qualified auditor; (b) pay a dividend or make any payment on account out of profits, until its institutional capital has reached a proportion of not less than ten per cent of the total assets of the co-operative society; or (c) declare or pay a dividend from unrealized gains, including stock grants or share grants, or gains arising from asset revaluation. 20fl Co-operative Societies Act 8 165 (3) A bonus based on wages or on the value of the products of a member or a bonus or patronage rebate calculated in proportion to the amount ofthe business done by each member with the co-operative society, may be distributed periodically to the members from surplus funds, after the deduction of all expenditure and after making allocation to the statutory reserves PART VIII FINANCIAL DISCLOSURE AND AUDIT 130.~( 1) The directors of a co-operative society, shall Annual financial , , statement place before the members at every annual meeting ot mcmhers of the co-operative society- (a) comparative financial statements relating separately tu- (i) the period that began on the date the co-operative society came into existence, and ended not more than twelve months after that date, or, if the co-operative society has completed a financial year, the period that began immediately after the end of the last period for which financial statements were prepared, and ended not more than twelve months after the beginning of that period; and (ii) the immediately preceding financial year; 166 Act 8 Co-operative Societies 2011 (b) the report of the auditor; and (c) any further information respecting the financial position of the co-operative society, and the results of its operations required by the bye-laws. (2) The financial statements mentioned in subsection (1 )(a)(i i) may be omitted, if the reason for the omission is set out in the financial statement to be placed before the members, or in a note attached thereto. (1) The finn ncial statornents retteITt'd to in subsection (1 )(a), shall include the balance sheet and detailed profit and loss accounts, in respect of all business transacted by the co-operative society in the financial years covered by the statements, prepared in accordance with international accounting standards, and including consolidated balance sheets and profit and loss accounts, in any case where the co-operative society has subsidiaries or associated companies. Approval of 131.-~(l) The directors of a co-operative society shall financial statements approve the financial statements referred to in section 130, and the approval shall be acknowledged by the signature of two or more directors. (2) A co-operative society shall not issue, publish or circulate, copies of the financial statements referred to in section 130, unless the financial statements are~ (a) approved and signed in accordance with subsection (I); and (b) accompanied by an auditor's report and management letter from the co-operative society's auditor. 2011 Co-operative Societies Act 8 167 (l) A co-operative society shall send to the Registrar, a copy of the financial statements, auditor's report and management letter referred to in section 130, within ten days prior to the annual general meeting of the co-operative society. P1ultidiflg 132.~{ 1) Not less than ten days before each annual IInanc.al meeting of members, a co-operative society shall make staternent, avai lable tn each member, a copy of the financial statements and report of the auditor referred to in section 13O. (2) Where a co-operative society applies to the Registrar, and the Registrar is satisfied that there arc reasonable grounds, the Registrar may excuse the co-operative society from complying with subsection (l). LB. Subject to sectio n 1~4. a co-operative society's Auditor", qual i fications. auditor shall be a member of a recognized professional body satisfactory to the Registrar and qualified to conduct audits. 134.-{ 1) Subject to subsection (7), an individual shall not Disqualifyll\g be qualified to be an auditor of a co-operative society, if he or auditor she is not independent of the co-operative society and its member co-operative societies, and of the directors and officers of the co-operative society and its member co-operati ve societies. (2) For the purposes of this section, whether or not an individual is independent is a question of fact to be determined, having regard to all the circumstances. (3) An individual shall be presumed not to be independent of a co-operative society if her or his business partner- 168 Act 8 Co-operative Societies 2011 (a) is a member, a director, an officer or an employee of the co-operati ve society or anyof its member co-operative societies, or a business partner or employee of any director, officer, member of employee of any such co-operative society. or its member co-operative societies: (b) is a member of a credit committee or any other committee of the co-operative society, or any of its member co-operative societies: (c) transacts a substantial amounr oC business with the co-operative society. or any of its member co-operative societies; (d) is a chief executive officer, chief financial officer, chiefaccounting officer, or any person serving in an equivalent position for the co-operative society, W<lS employed by that individual, and participated in any capacity in the audit of that co-operative society, during the one year period preceding the date of the initiation of the audit; or (c) provides to the co-operative society contemporaneously with the audit, any non-audit service including~ (i) bookkeeping or other services relating to the accounting records or financial statements of the co-operative society; (ii) fmancial information systems design and implementation; 2011 Co-operative Societies Act 8 169 (iii) appraisal or valuation services, fairness opinions, or contributions-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker, dealer or investment adviser services; (viii) legal services and expert services unrelated to the audit; or (ix) any other service that the Registrar determines is not permissible. (4) The provision of professional advice by, or on behalf of an individual, or his or her business partner shall not, by itself, deprive an individual or his or her business partner, of his or her independence for the purposes of this section. (5) An auditor who becomes disqualified under this section or has been replaced, or whose term has expired, shall immediately notify the Registrar in writing, and state the reasons for termination of his or her appointment. (6) A member uf it co-operative society may apply to the Registrar for an order, or the Registrar may, upon its own motion, make anorder declaring anauditor disqualified under this section, and the office of auditor vacant. 170 Act 8 Co-operative Societies 2011 Appointment 135. (1) Subject to subsection (4), the members of a of auditor. co-operative society shall- (a) at the first general meeting, appoint an auditor to hold office until the close of the first annual general meeting; and (b) at each annual meeting, appoint an auditor to hold office until the close of the next annual general meeting. (2) Notwithstanding subsection (I )(b), if an auditor is not appointed at an annual meeting, the incumbent auditor shall continue in office, until his or her successor is appointed at a subsequent meeting. (3) The remuneration of an auditor shall be specified by the Board. (4) An individual shall not accept appointment, consent to be appointed. or be appointed as auditor of a co-operative society, if he or she is replacing an auditor who has resigned, been removed, Or whose term of office has expired or is ahout to expire, until the individual has requested or received from the former auditor, a written statement of the circumstances and reasons why, in the auditor's opinion, the auditor is to be replaced. (5) Notwithstanding subsection (4), an individual otherwise qualified, may accept appointment or consent to be appointed as auditor of a co-operative society if, within twenty-one days of making the request referred to in that subsection, the individual does not receive a reply to it. (6) An auditor shall not assume office unless he or she has confirmed, in writing to the co-operative society, his or her willingness to serve as auditor. 20ll Co-operative Societies Act 8 I7J 136. ~(1) An auditor of a co-operative society ceases to Cessation of ofTic.c hold office when he or she- (a) resigns by giving written notice to the co-operative society; (b) is removed under section 137; or (c) has held the office for five consecutive years. (2) The resignation of an auditor shall become effective at the time his or her written resignation is sent to the co-operative society, or at the time specified in the resignation, whichever is the later date. (3) The co-operative society shall notify the Registrar, in writing, of the resignation of an auditor under subsection (I), within seven days ofreceipt ofthe resignation.

137 — The members of a co-operative society may, by Removal of

137. The members of a co-operative society may, by Removal of auditor. ordinary resolution at a special meeting, remove an auditor other than an auditor appointed by the Registrar under section 139. 138.--(1) Subject to subsection (4), the directors shall ~~~Ji~~cancy immediately fill a vacancy in the office of auditor. (2) Ifthere is not a quorum of directors, the directors then in office shall, within twenty-one days after a vacancy in the office ofauditor occurs, call a special meeting ofmembers to fill the vacancy. (3) Where the directors tail to call a meeting under subsection (2), or where there are no directors, a meeting for the purpose offil1ing a vacancy in the office of auditor, may be called by any member. 172 Act 8 Co-operative Societies 2011 (4) The bye-laws of a co-operative society may provide, that a vacancy in the office of auditor, be filled only by vote of the members, (5) An audi tor appointed to fill a vacancy, shall hold office for the unexpired term of his or her predecessor. Auditor 139. If a co-operative society does not have an auditor, the appointed by Registrar. Registrar may, upon the Registrar's own motion and shall, upon the application of a member, appoint and specify the remuneration of an auditor, and the auditor shall, subject to section 133, hold office until an auditor is appointed in accordance with section 135. Auditor's right to notice.

140 — The auditor of a co-operative society is entitled to

140. The auditor of a co-operative society is entitled to receive notice of every annual general meeting of the members of the co-operative society, and to be heard in presenting his or her report at the meeting. Required notice.

141 — If a member of a co-operative society who is entitled

141. If a member of a co-operative society who is entitled to vote at a meeting of members, or a director of a co-operative society, gives written notice to the auditor, or a former auditor of the co-operative society, not less than ten days before a meeting ofmembers ofthe co-operative society, to attend the meeting, the auditor, or former auditor, shall attend the meeting at the expense ofthe co-operative society, and answer questions relating to his or her duties as an auditor, or fanner auditor. Auditor's right to comment 142.--(1) An auditor who-~ (a) resigns; (b) receives a notice, or otherwise learns of a meeting of members called for the purpose of removing the auditor from office; or 2011 Co-operative Societies Act 8 173 (c) receives a notice, or otherwise learns of a meeting of members or directors at which another person is to be appointed to fill the office of auditor, whether because of the resignation or removal of the incumbent auditor, or because the auditor's term ofoffice has expired or is about to expire, may submit to the co-operative society and to the Registrar, a written statement giving the reason for his or her resignation, or the reasons why he or she opposes any proposed action. (2) When rt receives a statement referred to in subsection (1), the co-operative society shall immediately send a copy of the statement to every member entitled to receive notice of any meeting of members, and to the Registrar. 143. .r 1) The auditor ofa society shall examine its books Examination by ~ auditor and records, and shall make a report upon the annual financial statements and financial position to be placed before the members, and in every such report, the auditor shall state whether in the auditor's opinion, the balance sheet and income and expenditure account give a true and fair view of the state of affairs of the society and of its results for the period then ended, and submit any additional information in relation to the audit of the society, as the board or the Registrar considers necessary. (2) It shall also be the duty of the auditor, to certify whether the appropriate measures to counter money laundering and other suspicious transactions are in place. 144.~( I) Upon the demand of an auditor ofa co-operative {>'~ditOT'S right society, the present or former directors, officers, employees or to inspect. 174 Act 8 Co-operative Societies 2011 agents of the co-operative society, shall provide to the auditor- (a) such information and explanations; and (b) such access to records, documents, books, accounts and vouchers of the co-operative society, as are, in the opinion of the auditor, necessary to enable the auditor to make the examination and report required under section 143, and that the directors, officers, employees or agents arc reasonably able to provide. (2) Upon the demand ofthe auditor of a co-operative society, the directors o I the co-operative society shall· (a) obtain from the present or former directors, officers, employees or agents of any member of the co-operative society, the information and explanations that the directors, officers, employees and agents are reasonably able to provide and that are, in the opinion of the auditor, necessary to enable the auditor to make the examination and report required under section 143; and (b) provide the information and explanations so obtained to the auditor. (3) A former or present director, committee member, employee or agent of any mem ocr of a co-operative society, shall not take any action fraudulently, to influence, coerce, manipulate or mislead an independent auditor in the performance of an audit of the financial statements of a co- operative society, for the purpose of rendering such financial statements materially misleading. 20ll Co-operative Societies Act 8 175 (4) A former director, officer, employee or agent of a member who contravenes subsection (2) or (3) commits an offence, and is liable, on summary conviction- (a) in the case of a first offence, to a tine not exceeding twenty-five thousand dollars or to imprisonment for a term not exceeding three months, or to both; (b) in the case of a subsequent offence, to a fine not exceeding forty thousand dollars or to imprisonment for a term not exceeding one year. or to hath. 145.--(1) A director or an officer ofa co-operative society, Error or shall forthwith notify the co- operative society's auditor, of mi,statemcnl. any error or misstatement of which the director Or officer becomes aware, in a financial statement upon which the auditor or fanner auditor has reported. (2) When the auditor or a fanner auditor of a co-operative society is notified, or becomes aware, of an error or misstatement in a financial statement upon which he or she has reported to the co-operative society, and in his or her opinion, the error or misstatement is matenal, he or she shall inform each director of the co-operative society accordingly. (3) When under subsection (2), the auditor or a former auditor ofa co-operative society, informs the directors of an error or misstatement in a financial statement of the co-operative society, the directors shall- (a) prepare and issue revised financial statements; or (h) otherwise inform the members and the Registrar, of the error or misstatement. 176 Act 8 Co-operative Societies 2011 Privilege of auditor

146 — An auditor shall not be liable to any person in an

146. An auditor shall not be liable to any person in an action for defamation based On any act done or not done, or any statement made by him or her in good faith, in connection with any matter he or she is authorized or required to do under this Act. Annual, urunthf y and 147.--(1) Not less than ten days, or such shorter period as special returns. the Registrar may allow, before the date ofits annual meeting, a co-operative society shall- (a) file with the Registrar, an annual return for the previous year, on the form provided by the Registrar; and (b) provide the Registrar, with a copy of the financial statement to be placed before its members at its next annual meeting. (2) Within thirty days of the end of each month, a co-operative society shall file a monthly return with the Registrar, in accordance with the Regulations. (3) The Registrar may, by notice in writing, require a co-operative society, director or officer of a co-operative society, to make a special return on any subject connected with the business and affairs of the co-operative society, including on risk focused information, prudential reports, quarterly reports of large credit exposures, non-performing loans, investments, assets and liabilities, variance reports. (4) Where the Registrar ley' uests a special rerum under subsection (3), the Registrar shall specify in the notice a time within which the special return is to be made. 2011 Co-operative Societies Act 8 177 PART IX RECONSTRUCTION OF CO-OPERATIVE SOCIETIES 148.----(1) TIle reconstruction of a co-operative society is Methods of subject to the approval of the Registrar and may be effected reconstruction. by- (a) the amalgamation of one co-operative society with another co-operative society, to form a single co-operative society; (h) the transfer of the assets and liabilities of one co-operative society, to another co-operative society; or (c) the division of a co-operative society into two or more co-operative societies. (2) Sections 151 to 154, shall have effect with respect to the procedure that shall be followed, in relation to subsection (l ). 149.--{1) A company registered under the Companies Act, Conversion. or a registered industrial, provident or friendly co-operative society may, by special resolution, determine to convert itself into a co-operative society. (2) A special resolution for conversion into a co-operative society under subsection (l), shall appoint ten members of the company or the industrial, provident or friendly co-operative society who together with the secretary, shall sign the proposed bye-laws and who may, by resolution, be given such powers to act on behalf of the company or the industrial, provident or friendly co-operative society, as may be specified in such resolution. 178 Act 8 Co-operative Societies 2011 (3) A copy of the special resolution referred to in subsection (1), with three copies otthe bye-Jaws, shall be sent to the Registrar who may, upon receipt thereof, register the co-operative society, and issue a certificate in accordance with section 16. Effect of 150.---< 1) On the date of the certificate uf registration certificate of registration. issued under section 14lf-,- (a) the incorporation or registration under any other enactment of the company, or the i ndustri a1, provident or friendly co-operative society shall cease, and shall be cancelled by the proper officer; (b) the conversion of the company, or the industrial, provident or friendly co-operative society shall be effective; (c) the property of the company, or the industrial, provident or friendly co-operative society, shall become the property of the co-operative SOCIety; (d) the co-operative society shall be liable for the obligations of the company, or the industrial, provident or friendly co-operative society; (e) an existing cause of action, claim or liability or prosecution against the company, or the industrial, provident or friendly co-operative society, shall not be affected; 2011 Co-operative Societies Act 8 179 (f) a civil, criminal or administrative action pending against a converted company or an industrial, provident or friendly co-operative society, may be continued against the registered co-operative society; and (g) Q conviction against, or a ruling, order or judgment in favour of, or against a company or an industrial, provident or friendly co-operative society, may be enforced by or against the registered co-operative society. (2) An obligation or penalty arising under any ofthe matters mentioned in subsection (I), for which the former company, or industrial, provident or friendly co-operative society is liable, or potentially liable, at the date of the certificate of registration issued under section 149, shall have priority, as against the property of the registered co-operative society, over all other rights or claims against, or liabilities of, the registered co-operative society. 151.--{I) Any two or more co-operative societies may, by Arna1gamation . 0 f co-operative a resolution passed by not less than three-fourths of all the societies members of each co-operative society present, and voting at a special general meeting called for the purpose, amalgamate as one co-operative society. (2) Where a resolution referred 10 in subsection (1) is passed, each such co-operative society shall apply to the Registrar for cancellation of its registration, and the co-operative societies shall jointly make application for the registration of the amalgamated co-operative society. 180 Act 8 Co-operative Societies 2011 (3) The registration ofthe amalgamated co-operative society, shall be sufficient to vest the assets and liabilities of the amalgamating co-operative societies in the amalgamated co-operative society. Transfer of 152.--{1) Any co-operative society may, by resolution assets of co-operative passed by not less than three-fourths of all the members societies. present, and voting at a special general meeting called for the purpose, agree to transfer its assets and liabilities to any other co-operative society which has agreed to accept them. (2) The acceptance ofthat other co-operative society shall be, by a resolution passed by not less than three-fourths of the members ofthat other co-operative society present, and voting at a special general meeting called for the purpose. (3) On the passing of the resolutions referred to in subsections (1) and (2), the transferor co-operative society shall apply to the Registrar for cancellation ofits registration, and the transferee co-operative society, shall submit to the Registrar, a copy of the transferee co-operative society's resolution agreeing to the transfer. (4) Subject to subsection (5), the cancellation of registration and the submission of the resolution agreeing to accept the transfer, shall be sufficient to vest the assets and liabilities of the transferor to the transferee. (5) Where the vesting of the assets of a co operative society involves real estate, a copy of the resolution referred to in subsection (1), certified as such by the Registrar, the resolution shall be recorded at the Land Registry. Claims of objecting

153 — Notwithstanding sections 151 and 152, an

153. Notwithstanding sections 151 and 152, an creuitors. amalgamation or transfer shall nut be effected unless the creditors of the co-operative societies concerned are given three months' written notice of the proposal, and have signified that they have no objections. 2011 Co-operative Societies Act 8 181 154.---( I) A co-operative society may, by resolution in this Division of co-operative section referred to as a "preliminary resolution" passed by society. three-fourths of the members present, and voting at a special general meeting called for the purpose, resolve to divide itself into two or more co-operative societies. (2) A preliminary resolution- (a) shall contain proposals for the division of the assets and liabilities of the co-operative society, among the new co-operative societies into which it is proposed to divide the co- operative society; and (b) may specify the area of operation of, and the members who will constitute, eaeh of the new co-operative societies. (3) A copy of the preliminary resol ution shall be sent to the Registrar, and all members and creditors of the co-operative society that is being divided. (4) At least ten days notice of the preliminary resolution shall be given to auy person whose interest will be affected by the division of the co-operative society, and by publishing the notice in the Gazette, and in at least two issues of a newspaper published and circulated in Grenada. (5) A member of a co-operative society may, notwithstanding any bye-law to the contrary, by notice given to the co-operative society within a period of three months from his or her receipt of the preliminary resolution, state his or her intention not to become a member of any of the new co-operative societies. 182 Act 8 Co-operative Societies 2011 (6) A creditor of the co-operative society may, notwithstanding any agreement to the contrary, by notice given to the co-operative society within a period of three months from his or her receipt of the preliminary resolution, state his or her intention to demand the payment of moneys due him or her. (7) Any person, other than a member or creditor, whose interest may be affected by the division of a co-operative society may, by notice given to the co-operative society, object to the division, unless his or her claim is satisfied. (8) After the expiry ofthree months from the receipt ofthe preliminary resolution by all the members and creditors of the co-operative society, and of the notice to other person given under subsection (4), another special general meeting of the co-operative society, of which at least fifteen days notice shall be given to its members, shall be convened for the consideration of the preliminary resolution. (9) If at the special general meeting referred to In subsection (8), the preliminary resolution is confirmed by a special resolution, either without changes or with such changes as in the opinion ofthe Registrar are not material, the Registrar may, subject to subsection (11) and section 16, register the new co-operative societies; and upon registration, the original co-operative society shall be taken to be dissolved and its registration cancelled. (10) The decision of the Registrar as to whether any changes made in the preliminary re-solution are material , shall be final and not subject to any appeal. 2011 Co-operative Societies Act 8 183 (11) At the special genera] meeting referred to in subsections (8) and (9), provision shall he made hy another resolution for- (a) repayment of the share capital of all the members who have given notice under subsection (5); (b) satisfaction of the claims of all the creditors who have given notice under subsection (6); and (c) satisfaction of the claims of such of the other persons, who have given notice under subsection (7), but no member, or creditor or other person, shall be entitled LO such repayment or satisfaction, until the preliminary resolution is confirmed in accordance with subsection (9). (12) Where within such time as the Registrar considers reasonable- (a) the share capital ofthe members referred to in subsection (11)(a) is not repaid; (b) the claims of the creditors referred to in that subsection are not satisfied; or (c) the claims of the other persons mentioned in subsection (11 )(c) are not satisfied or secured, the Registrar may refuse to register the new co-operative societies. 184 Act 8 Co-operative Societies 2011 Effect of 155. The registration of new co-operative societies registration of new established under section 154, IS sufficient to vest the assets co-operative and liabilities of the original co-operative society, in the societies. manner specified in the preliminary resolution, as confirrned in accordance with section 154(8) and (9). PART X RECEIVERS AND RECEIVER-MANAGERS Appointment of 156.---{1) Where, in the opinion of the Registrar or the receiver Or receiver- High Court, based on the results of an examination manager. undertaken under section lK6, it IS necessary to appoint a receiver or a receiver-manager to protect the equity of the members, the Registrar or the Court may appoint a receiver or a receiver-manager. (2) An appeal lies to the Court of Appeal against the appointment of a receiver or receiver-manager, by the Registrar or the High Court, within ten days of the appointment. Functions of 157.~(l) Subject to the rights of secured creditors, a receiver. receiver of any property of a co-operative society may- (a) receive the income from the property and pay the liabilities connected with the property; and (b) realize the security interest ofthosc on whose behalf the receiver is appointed. (2) Notwithstanding subsection (l), and subject to any order that the Court may make under section 161, a receiver who is not appointed as manager of a co-operative society, shall not carry on the business of the co-operative society. 2011 Co-operative Societies Act 8 185

158 — Where a receiver of a co-operative society is also Functions of

158. Where a receiver of a co-operative society is also Functions of appointed manager of the co-operative society, the receiver manager- may carry on any business of the co-operative society to protect the equity of the members. A receiver or receiver- manager appointed by a Court of the Registrar shall be discharged by the Court or Registrar if in the opinion of the Court or Registrar the equity of the members has been sufficiently protected as to enable the society to be returned to its members.

159 — Where a receiver Or receiver-manager is appointed by Ccssal,ion of

159. Where a receiver Or receiver-manager is appointed by Ccssal,ion of ' a C ourt or th e R egistrar, no diirectors 0 f th e co-operative ' Board s powers. society shall exercise the directors' powers that the receiver or receiver-manager is authorized to exercise, until the receiver or receiver-manager is discharged,

160 — (1) A receiver or receiver-manager appointed by a Duty of receiver

160.-(1) A receiver or receiver-manager appointed by a Duty of receiver Court, shall act in accordance with any directions of the ::~~~~er Court. (2) A receiver or receiver-manager appointed by the Registrar, shall act in accordance with any directions of the Registrar. (3) A receiver or receiver-manager shall- (a) act honestly and in good faith; and (b) deal with any property of the co-operative society in his or her possession or control, in a commercially reasonable manner.

161 — Upon an application by a receiver or a Duccucus by

161. Upon an application by a receiver or a Duccucus by receiver-manager ofa co-operative society, whether appointed Court by the Courtor the Registrar, the Courtmay make any order tt thinks fit, on any matter including-- 186 Act 8 Co-operative Societies 2011 (a) appointing, replacing or discharging a receiver or receiver-manager, and approving his or her accounts; (b) determining the notice to be given to any person, or dispensing with notice to any person; (c) fixing the remuneration of the receiver or receiver-manager; (d) requiring the receiver or receivcr-manager- (i) to make good any default in connection with his custody or management of the property and business of the co-operative society; and (ii) to relieve the receiver or receiver- manager from any default, on any terms that the court considers appropriate; (c) confirming any act of the receiver or receiver- manager; and (f) giving directions on any other matter relating to the duties of the receiver or receiver- manager. Dnccmnrs by 162.~1) Where a receiver or a receiver-manager IS Registrar appointed by the Registrar, the receiver or receiver-manager may apply to the Registrar for directions on any matter relating to his or her duties. 2011 Co-operative Societies Act 8 187 (2) Where the Registrar receives an application under subsection (l), it may make any order it considers appropriate, including any other similar to an order described in sections 161 (c) to (f)

163 — A receiver or receiver-manager shall- Required

163. A receiver or receiver-manager shall- Required actions of (a) in the case of a receiver or receiver-manager receiver appointed by the Court, immediately notify the Registrar of his or her appointment or discharge; (b) take into his or her custody and control, the property of the co-operative society in accordance with the Court order or the order of the Registrar, under which he or she is appointed; (c) open and maintain a bank account in his or her name as receiver or receiver-manager of the co-operative society, for the monies of the co-operative society coming under his or her control; (d) keep detailed accounts of all transactions carried uut by him Ul her, as receiver or receiver -manager; (e) keep accounts ofhis or her administration that he or she shall cause to be available during usual business hours, for inspection by the directors of the co-operative society, the Registrar, or any person authorized by the Registrar; 188 Act 8 Co-operative Societies 2011 (f) prepare at least once in every six-month period, after the date of his or her appointment, financial statements ofhis or her administration, as far as is practicable, in the form required in section 130; (g) on completion of his or her duties, render a final account uf his or her administration, in the fotm he or she has adopted for preparation of interim accounts under paragraph (f); and (h) file with the Registrar, a copy of any financial statement mentioned in paragraph (f), and any final account mentioned in paragraph (g), within fifteen days of the preparation of the financial statement or rendering of the final account. PART XI DISSOLUTION Dissolution by members"

164 — (1) Subject to the approval of the Registrar, the

164.-(1) Subject to the approval of the Registrar, the members of a co-operative society may authorize the dissolution of the co-operative society. (2) The Board shall cause a notice of a special meeting of members to be sent in the manner prescribed in section 46, to each member, for the purpose of authorizing dissoIution. (3) Each member ofthe co-operative society has the right to vote with respect to dissolution. (4) For the purpose of subsection (1), dissolution is authorized when the members approve the dissolution by a special resolution of the membership. 2011 Co-operative Societies Act 8 189 (5) Where the Registrar- (a) receives notice, in a form satisfactory to it, of an authorization to dissolve a co-operative society; and (b) is satisfied that it is in the best interest of the co-operative society and its members, the Registrar shall approve the dissolution. (6) The authorization approved under subsection (4) shall set out- (a) the assets and liabilities of the co-operative society; (b) the claims of any creditors; (c) the number of members; and (d) the nature and extent of the members' interest in the co-operative society. (7) Subject to subsection (9), where a co-operative society has an unallocated surplus, and the authorization approved under subsection (4) states, that it is not to be paid out at the time of the co-operative society's dissolution, the unallocated surplus shall be paid to one or more trustees who are- (a) named in the special resolution; or (b) where not named in the special resolution, appointed by the Registrar. 190 Act 8 Co-operative Societies 20ll (8) The trustees named or appointed pursuant to subsection (7) shall- (a) deposit the money in a special trust account-- (i) in a co-operative society; or (ii) in any financial institution licensed under the Banking Act, or any company registered under the Insurance Act, or (b) invest the money in- (i) securities issued by the Government; (ii) securities the payment of interest on which is guaranteed by the government; or (iii) any other manner authorized by the Registrar. (9) Where a trust is created under subsection (7), the income and principal of the trust shall be expended within a period of twenty years from the date that the trust was established, for any co-operative purpose the Registrar considers fit. (10) In this section- (a) "interest" includes the interest of a member in a co-operative society, and includes member loans and obligations of any kind that- (i) arise by virtue of the bye-laws of the co-operative society; and 2011 Co-operative Societies Act 8 191 (ii) are owed by the co-operative society to the members; and (b) "unallocated surplus" includes any net proceeds from the sale ofassets On dissolution ofthe co-operative society, after the liabilities of the co-operative society, and the claims of creditors and members have been satisfied. ] 65.---{1) When the Registrar approves a special resolution Notice of dissolution by passed under section 164, the Registrar shall, at the expense members" of the co-operative society, cause a notice of the special resolution to be publishcd- (a) in the Gazette; and (b) once a week for two weeks in a newspaper published and circulated in Grenada. (2) Notwithstanding subsection (1), where the Registrar receives an affidavit from the officers of a co- operative society stating, that the co-operative society has no assets and no liabilities and it is satisfied that it is appropriate, the Registrar may- (a) exempt the co-operative society from suhsedion (1); and (b) cause, at the Registrar's expense, a notice of the special resolution passed under section 164(1) to be published in the Gazette. (3) The Registrar shall require from a co-operative society, liquidator Or trustee appointed by a co-operative society, or any other person who is required to provide information, an annual or other return showing- 192 Act 8 Co-operative Societies 2011 (a) the progress of dissolution; (b) the distribution ofany undistributed surplus or reserve; (c) the progress of the administration of a trust established in accordance with this section; and (d) any other information that it may require. Dissolution by 166.-{1) Where the Registrar has reasonable cause to Registrar. believe that a co operative society (a) has not commenced business within twelve months shown on its certificate ofregistration; or (b) has not carried on business for twelve consecutive months, the Registrar shall send to the secretary of the co-operative society, a letter inquiring whether the co-operative society is carrying on business, is in operation, or is :mbmitting an annual return. (2) Where the Registrar does not, within one month of the date it sent a letter under subsection (l), receive an answer to the letter, the Registrar shall, within fourteen days after the expiry of the month, send to the secretary of the co-operative society, a letter referring to the letter sent under S1l bsection (1), and stating that- (a) no answer to that letter has been received by the Registrar; and 2011 Co-operative Societies Act 8 193 (b) if an answer is not received to the letter sent under this subsection within one month from the date it is sent, a notice will be published in the Gazette, to strike the name of the co- operative society off the Register and to dissolve the co-operative society. (3) Where the Registrar- (a) receives an answer from a co-operative society that it is not carrying on business, or is not in operation, or will not be submitting an annual return; or (b) does not, within one month after the date that the Registrar sent a letter under subsection (2), receive an answer to that letter, the Registrar shall publish, in the Gazette, and send to the co-operative society, a notice that, at the expiry of one month [10m the date of that notice, the co-operative society will, unless cause is shown to the contrary, be struck off the register and the co-operative society will be dissolved. (4) At the expiry of the period mentioned in a notice sent under subsection (3), the Registrar shalt unless cause to the contrary is previously shown by the co-operative society- (a) where the Registrar is satisfied that the co-operative society has no assets or liabilities, issue a certificate of dissol ution in the prescribed form; or (b) appoint a liquidator to dissolve the co-operative society. 194 Act 8 Co-operative Societies 20IJ Dissolution for 167.-(1) Where a co-operative society fails to provide a failure to account for copy of the annual financial statements to its members at an business. annual or special meeting called for that purpose, or within a period of twelve months after the close of its financial year, the Registrar- (a) may require the directors to call a special meeting of the co-operative society for the purpose ofconsi dering the business transacted during the preceding financial year, and for providing to the members and to the Registrar, a copy of the annual financial statement; and (b) shall, where the Registrar requires a special meeting to be called under paragraph (a), determine a time period within which the special meeting is to be called. (2) Where the directors fail to call a special meeting within the time period set out in subsection (l), the Registrar may call the special meeting- (a) to review the financial position of the co-operative society, and the members' interests in the co-operative society; and (b) to ascertain whether the members wish to continue the business of the co-operative society, and to comply with sections 130 and 132. (3) Where- (a) a quorum of members is not present at a special meeting called under subsection (2); or 2011 Co-operative Societies Act 8 195 (b) the members fail to pass a resolution to the effect that the co-operative society is to carry on business and to comply with sections 130 and 132, the Registrar shall notify the directors that, unless sections 130 and 137 are complied with within one month from the date of the notice, the co-operative society will be struck off the Register and dissolved. (4) Notwithstanding subsection (3), the Registrar may extend the period for compliance with sections 130 and 132. (5) Where a co-operative society does not comply with sections 130 and 132 within the period mentioned in subsection (3), or set by the Registrar under subsection (4), the Registrar shl'l11-- (a) where the Registrar is satisfied that the co-operative society has no assets or liabilities, issue a certificate of dissolution in the prescribed form; or (b) appoint a liquidator to dissolve the co-operative society.

168 — ( 1) The Registrar or an interested person may, after Dissolution by

168.-( 1) The Registrar or an interested person may, after Dissolution by giving the co-operative society three months notice of the Court. proposed application, apply to the Court for an order dissolving a co-operative society, if the co-operative society- (a) obtained its registration by fraud or mistake; 196 Act 8 Co-operative Societies 2011 (b) exists for an illegal purpose; (c) has wilfully, after notice by the Registrar, violated any of the provisions of this Act, the Regulations or Its bye-laws; (d) is no longer operating on co-operative principles; or (e) has the number of its members reduced below the minimum number required by this Act for the co-operative society. (2) Where an interested person applies under this section, he or she shall give the Registrar notice of his or her application, and the Registrar shall be entitled to appear and be heard and represented, either by a member of staff of the Registrar or by an attorney-at-law (3) Where the Court receives an application under this section, the Court may order that the co-operative society be dissolved or liquidated, under the supervision of the Registrar. (4) Where the Registrar receives an order made under subsection (3), the Registrar shall- (a) where the order is to dissolve the co-operative society, issue a certificate of dissolution in the prescribed form; or (b) where the order is to liquidate and dissolve the co-operative society under the supervision of the Registrar, publish a notice in the Gazette. 2011 Co-operative Societies Act 8 197

169 — ( 1) Where a co-operative society has been disso Ived Revival of

169.-( 1) Where a co-operative society has been disso Ived Revival of dissolved under this Part, any interested person may apply to the co-operative Registrar to have the co-operative society revived, by society. submitting to the Registrar- (a) an application for revival in such fonn as the Registrar may approve; and (b) such other information as the Registrar may require. (2) Where the Registrar receives an application for revival under subsection (l ), and the Registrar is satisfied that the co-operative society is in compliance with this Act, the Registrar may- (a) issue a certificate of revival in the prescribed form, and publish notice of the revival in the Gazette; and (b) impose any conditions on the co-operative society that is reasonable, with respect to the co-operative society. (3) A co-operative society is revived on the date shown in the certificate of revival. (4) Where a co-operative society is revived under this section, it- (a) shall have all the rights and privileges, and (b) shall be liable for the obligations, that it would have had, if it had not been dissol ved, subject to any terms that may be imposed bythe Registrar, and to any rights acquired by any person after its dissolution. 198 Act 8 Co-operative Societies 2011 Appointment of hquidctor. 170.--{1) Where- (a) a co-operative society is to be dissolved under this Part; or (b) no liquidator is appointed by the members or the Court; the Registrar may appoint a liquidator to wind up the affairs of the co-operative society. (2) Notwithstanding subsection (1), where the Registrar is satisfied that the co-operative society has no assets and liabilities, he may issue a certificate of dissolution in the prescribed form Commencement of liquidation.

171 — The liquidation of a co-operative society commences

171. The liquidation of a co-operative society commences wherc- (a) a special resolution for dissolution of the co-operative society IS approved by the Registrar under section 164; (b) the Registrar appoints a liquidator under section 166 or 167; (c) the Court makes an order to dissolve under section 168; or (d) the registration of a co-operative society is cancelled by the Registrar under section 18 or 23 of this Act. Cessation uf business.

172 — (1) From the date of the commencement of its

172.-(1) From the date of the commencement of its liquidation- 2011 Co-operative Societies Act 8 199 (a) a co-operative society continues in existence, but shall cease to carry on its business except, insofar as may be required, in the opinion of the liquidator, for an orderly liquidation; and (b) any transfer of shares, other than a transfer made to or with the approval of the liquidator, and any alteration in the status ofthe members made after commencement ofthe liquidation, shall be void. 0

173 — ( I) Where two r more liquidators are appointed, all ;~~~~~IlS

173.-( I) Where two r more liquidators are appointed, all ;~~~~~IlS the provisions in this section with respect to a liquidator apply respecting to a1] 0 f t he I'rqui.dators. 11 quidators . (2) On the appointment of a liquidator under this Part, all the powers of the directors vest in the liquidator. (3) A liquidator may delegate any of the powers vested in him or her under subsection (2), to the directors Or members. (4) Where the members of a co-operative society appoint a liquidator, they may, at that time or at a subsequent genera] meeting, pass a resolution giving direction to the liquidator with respect to the disposal of the property of the co-operative society. (5) Where- (a) the members appoint a liquidator and do Hot issue direction undcr subsection (4); or (b) a liquidator is not appointed by the members, 200 Act 8 Co-operative Societies 2011 the liquidator is subject to the directions, orders and instructions of the Registrar, with respect to the mode and terms and conditions on which the liquidator may dispose of the whole or any part of the property of the co-operative society. (6) Where a vacancy in the office of liquidator occurs, the Registrar may appoint another person to fill the vacancy. (7) In all proceedings connected with the co-operative society, the liquidator is to be described as the liquidator of the co-operative society, and not by his or her individual name only. Duties of

174 — On his or her appointment, a liquidator shaIl

174. On his or her appointment, a liquidator shaIl- liquidator. (a) immediately give notice of his or her appointment- (i) in the case of a liquidator not appointed by the Registrar, to the Registrar; and (ii) to each claimant and creditor known to the liquidator; (b) immediately publish notice ofhis appointment in the Gazette, and once a week for two consecutive weeks, in a newspaper published and circulated in Grenada; (c) set out in the notice mentioned in paragraphs (a) and (b) a provision requiring any person- 2011 Co-operative Societies Act 8 201 (i) indebted to the co-operative society, to render an account and pay to the liquidator at the time and place specified; (ii) possessing property of the co-operative society, to deliver it to the liquidator at the time and place specified; and (iii) having a claim against the co-operative society, whether liquidated, unliquidated, future or contingent, to present particulars of the claim in writing, to the liquidator, not later than two months after the first publication of the notice; (d) take into his or her custody and control, the property of the co-operative society; (e) open and maintain a trust account for the monies of the co-operati ve society; (f) maintain separate lists of the members, creditors, and other persons having claims against the co-operative society; (g) where at any time the liquidator determines that the co-operative society is unable to pay or adequately provide for the discharge of its obligations, apply to the Registrar for directions; and 202 Act 8 Co-operative Societies 2011 (h) deliver to the Registrar and the co-operative society, at least once in every twelve-month period, after his or her appointment, or more often as the Registrar may require, financial statements of the co-operative society in the form required in section 130, or in any form that the liquidator considers proper or that the Registrar may require. Powers 01 liquidator. 175.--( 1) The liquidator may- (a) retain attorneys-at-law, accountants, engineers, appraisers and other professional advisors; (b) bring, defend or take part in any civil, criminal or administrative action or proceeding, in the name and on behalf of the co-operative society; (c) carry on the business of the co-operative society as required for an orderly liquidation; (d) sell by public auction or private sale, any property uf the co-operauve society; or (e) do all acts and execute any documents in the name, and on behalf of, the co-operative society; (f) borrow money on the security of the property of the co-operative society; 2011 Co-operative Societies Act 8 203 (g) settle or compromise any claims by, or against, the co-operative society; and (h) 00 all other things that he considers necessary for the obligation of the co-operative society, and distribution of its property. (2) Where a liquidator has reason to believe that a person has in his or her possession, or under his or her control, or has concealed, withheld or misappropriated any property of the co-operative society, he may apply to the Court for an order requiring that person to appear before the Court, at the time and place designated in the order, and to be examined. (3) Where the examination mentioned in subsection (2) discloses that a person has concealed, withheld or misappropriated property of the co-operative society, the Court may order that person to restore the property or pay compensation to the liquidator, on behalf ofthe co-operative society. (4) A liquidator shull purchase, directly or indirectly, any part of the stock-in-trade, debts or assets of the co-operative society. 176.~-(l) A liquidator shall not be liable where he or she Limnation on liability of relies, in good faith, on-- liquidator. (a) financial statements of the co-operative society represented to him or her (i) by an officer ofthe co-operative society; or 204 Act8 Co-operative Societies 2011 (ii) by the auditor of the co-operative society, in a written report that states that the financial statements reflect fairly the financial condition of the co-operative SOCIety; or (b) an opinion or statement of an attorney-at-law, accountant, engineer, appraiser or other professional advisor retained by the liquidator. Cost~ of 177.~ 1) A liquidator shall pay costs of liquidation out of liquidation. the property ofthe co-operative society, and shall payor make adequate provision for all claims against the co-operative society. (2) After the date specified by the liquidator for distribution under section ] 74(c)(iii), the liquidator may distribute all, or any part of the assets of the co-operative society, among the parties entitled to the assets, having regard to the claims of which the liquidator has notice. (3) The liquidator shall not be liable for any part of the assets of the co-operative society distributed under subsection (2), to any person, notice of whose claims the liquidator did not have at the time of distribution. (4) When distributing the assets of a co-operative society under this section, the liquidator shall pay, in priority, to the claims ofthc creditors of the co-operative society, the wages or salaries ofall persons, other than directors employed by the co-operative society at the time of the commencement ofthe obligation, or within one month before, not greater than three months' wages or salary, and those persons are entitled to rank as creditors oftheco-operative society for any residue of the claims. 2011 Co-operative Societies Act 8 205 178.~( 1) In the liquidation of a co-operative society, the Closure of liquidation, funds, including the statutory reserves, shall be applied- (a) firstly to the cost of liquidation; (b) secondly to the discharge of the liabilities of the co-operative society; (c) thirdly to the payment of share capital; and (d) fourthly, if the bye-laws of the co-operative societypennit, to the payment ofa dividend at a rate not exceeding 10% per annum, for any period during which no distribution of profits has heen made. (2) Any surplus remaining after the application of the funds to the purposes specified in subsection (1) may, at the discretion of the Registrar, be used for any co-operative purpose the Registrar considers fit. (3) Where the liquidation is closed in accordance with subsection (1), the Registrar shall- (a) issue directions with respect to the custody or disposal ofthe documents and records of the co-operative society; and (h) discharge the Iiquidator. (4) Where the Registrar discharges a liquidator under subsection (3), the Registrar shall issue a certificate of dissolution in the prescribed manner. (5) The co-operative society shall cease to exist on the date shown in the certificate of dissolution. 206 Act B Co-operative Societies 2011 Custody of 179. A person who has been granted custody of the "fef:.iwrl", documents and records of a dissolved co-operative society, remains liable to produce those documents and records for six years following the date of its dissolution, or until the expiry of any other shorter period that the Registrar may set. Remuneration 180.----(1) Where there is no agreement or provision fixing of liquidator the remuneration of a liquidator, the liquidator shall be entitled to a commission based on the net proceeds of the estate ofthe co-operative society, realized, after deducting his or her expenses and disbursements. (2) The amount of the commission mentioned in subsection (1) shall be equal to- (a) 5% on the first $1,000 realized; (b) 2.5% on the next $4,000 realized; and (c) 1.25% on any sum greater than $5,000 realized. (3) Where a liquidator applies to the Registrar, the Registrar may increase the amount of commissions set out in subsection (2). (4) A liquidator is entitled to any fee or charge for his or her services, in addition to the commission allowed under [his section. Continuation of actions. 181.~(l) Notwithstanding the dissolution of a co-operative society under this Act- (a) a civil, criminal or administrative action or proceeding, commenced by or against the co- 2011 Co-operative Societies Act 8 207 operative society before its dissolution, may be continued as ifthe co-operative society had not been dissolved; (b) a civil, criminal or administrative action or proceeding, may be brought against the co- operative society within two years after its dissolution, as if the co-operative society had not been dissolved; and (c) any property that would have been available to satisfy any judgment or order if the co- operative society had not been dissolved, shall remain available for that purpose. (2) Service of a document on a co-operative society after its dissolution, may be effected by serving the document on a person shown on the records of the Registrar, as one of the last directors of the co-operative society. (3) Notwithstanding the dissolution 0 f a co-operative society, a person to whom any of its property has been distributed, is liable to any person claiming under subsection (I ), to the extent ofthe amount received by that person, on the distribution with respect to any share of the co-operative society that that person held, and an action to enforce such liability may be brought within two years after the date of dissolution of the co-operative society. 182,---{l) On the dissolution ofa co-operative society, the Unknown claimants of liquidator shall convert, into money, the portion of the mcrnners. property distributable to a creditor or member who cannot be found after a reasonable investigation, and shall deposit the money in a co-operative society or with trustees appointed by the Registrar. 208 Act 8 Co-operative Societies 20JI (2) A payment under subsection (1), shall be in satisfaction of a debt or claim of such creditor or member. (3) Where a creditor establishes within three years after the dissolution of a co-operative society, that he or she is entitled to any money paid under subsection (l) to a co-operative society, or to trustees appointed by the Registrar, the co-operative society or the trustees, shall pay the amount of the claim out of the monies deposited. (4) Where monies deposited under this section are not distributed within three years after the dissolution of a co-operative society then, subject to the approval of the Registrar, the co-operative society or the trustees appointed by the Registrar, shall distribute those monies in accordance with section 178(2) or the bye-laws. Powerof 183.-(1) Where, in the course of the dissolution of a Registrar to surcharge. co-operative society, it appears that any person who has taken part in the organization or management of the co-operative society, or any past or present officer of the co-operative society has misapplied or retained OI become liable or accountable for any money or property of the co-operative societ y, or has been guilty of misfeasance or breach of trust in relation to the co-operative society, the Registrar may, on the application of the liquidator or of any creditor or contributor, carry out an examination into the conduct ofsuch person, and make an order requmng the person to repay or restore the money or any part thereof with interest at such rate as the Registrar may think just, or to contribute such sum to the assets of such co-operative society by way of compensation, in regard to the misapplication, retainer, dishonesty or breach of trust, as the Registrar may think just (2) This section shall apply, notwithstanding that the act is one fOl which the offender may be criminally responsible. 2011 Co-operative Societies ActS 209

184 — Any person aggrieved by an order of the Registrar Appeal against

184. Any person aggrieved by an order of the Registrar Appeal against surcharge. made under section 183, may appeal to the Tribunal within twenty-one days from the date of such order, and the decision of the Tribunal shall he final on any question of fact.

185 — (1) This part does not apply to a co-operative ~~c:tionof

185.-(1) This part does not apply to a co-operative ~~c:tionof society that is bankrupt within the meaning of the Bankruptcy Act. (2) Where a co-operative society is at any time found, in proceedings under the Bankruptcy Act, to be bankrupt within the meaning of that Act, any proceedings taken under this Part to dissolve or to liquidate and dissolve the co-operative society, shall be stayed. PART XII EXAMINATIONS AND INVESTIGATIONS 186.----( 1) In addition to its powers of routine inspection Examinations. under sections 5(4) and 22(1), the Registrar may appoint a person as examiner, who shall make an examination of the records and the affairs of the co-operative society. (2) In its request for an examination under this section, the Registrar may set such limits and conditions on the scope and conduct of the examination as the Registrar considers appropriate; and, in carrying out the examination, the powers of the examiner under the provisions of this section, shall be limited accordingly. (3) An examiner requested by the Registrar to carry out an examination under this section may, On production of the examiner's authorization to any person concerned, at all reasonable times, inspect and take copies of: or extracts from, 212 Act 8 Co-operative Societies 2011 member, agent or liquidator ofthe co-operative society, shall provide any explanation which may reasonably be required of an item so produced. (11) Where a person on whom a notice is served under subsection (7), does not have in his or her possession or under his or her control, an item specified in the notice, but knows where it is, the person shall not be regarded as complying with the notice, unless he or she states to the best of his or her knowledge and belief, where the item is and, if so required, verifies that information by a statutory declaration. (12) The production by any person of any item forming part of the books and documents of a co-operative society, shall not prejudice any lien which that person claims over that item; but nothing in this section shall compel- (a) the production, by an attorney-at-law, of any document containing a privileged communication made by or to him or her in that capacity; or (b) the provision of information contained in a privileged communication so made. (13) A person who contravenes subsection (7) or (8) commits an offence, and is liable, on summary conviction, to a fine not exceeding ten thousand dollars, or to imprisonment for a term not exceeding six months, or to both. (14) Ifthe Registrar considers it just and so requires, by notice in writing, all Of any of the expenses incurred by the Registrar, in exercising his or her powers under subsection (7), shaH be met, either wholly or to such extent as the Registrar may so require- 2011 Co-operative Societies Act 8 213 (a) out ofthe funds ofthe co-operative society; or (b) by the directors or former directors of the co-operative society or any of them, and any sum which a co-operative society or other person is required to pay by a notice under this subsection. shall be recoverable summarily by the Registrar as a civil debt. (15) For the purpose of this section, "agent" in relation to a co-operative society, includes its bankers, accountants, attorneys-at-law, auditors and its financial and other advisers. (16) Subject to subsection 227(3), a director, committee member, employee or agent of a co-operative society shall not- (a) obstruct any person who is carrying out an examination under this Act; or (b) obstruct the examination of a co-operative society undertaken under this Act. (17) A director, committee member, employee or agent of a co-operative society who contravenes subsection (16) commits an offence, and is liable, on summary conviction, to a fine not exceeding twenty thousand dollars, or to imprisonment for a term not exceeding one year, or to both. investigations. 187.--(1) Where-- (a) an application is made to the Registrar by the lesser of twenty-five members or ten per cent of the membership of a co-operative society, 214 Act 8 Co-operative Societies 201I each of whom has been a member of the co- operative society throughout the period of twelve months ending on the date of the application; and (b) the Registrar is of the opiruon that it is necessary to do so in the interests of the orderly and proper regulation of the business of a co-operative society, the Registrar may appoint one or more investigators, to investigate the affairs of the co-operative society. (2) An application under subsection (1)(a), shall be supported by such evidence as the Registrar may require tor the purpose of showing that the applicants- (a) have good reason for reqUiting the investigation to be made; and (b) have nut been actuated by malicious mali yes in their application, and ifso required by the Registrar, the applicants shall deposit with it, prior to, and as security for the costs of, the investigation such sum as it may rcasonahly require (3) If an investigator appointed under this section to investigate the affairs of a co-operative society thinks it necessary, for the purpose of the investigation, to investigate also the affairs or any other body, whether a co-operative society or not, which is, or has at any relevant time been associated with the principal co-operative society, the investigator may do so with the approval of the Registrar. 2011 Co-operative Societies Act 8 215 (4) A notice ofan application under subsection (l )(a) as the Registrar may require, shall be given to the co-operative society concerned and, where applicable, to any other body whose affairs are to be investigated by virtue of subsection (3). (5) Before appomting an investigator under this section, the Registrar shall, if the Registrar is of the opinion that it would not be prejudicial to the interests ofthe members or creditors of the co-operative society, notify the co-operative society, in writing, of the action which the Registrar proposes to take, and of the grounds on which the Registrar proposes to take it and, in such case, the Registrar shall have regard to any explanatory statement in writing, which may be given by the co-operative society within fourteen days from the receipt of the notification. (6) In the case of an investigation, the expenses may be defrayed in the first instance by the office of the Registrar, but it shall be entitled to be repaid these expenses- (a) where the investigation results from an application under subsection (l )(a), by the applicants, to such extent, if any, as the Registrar may direct; (b) in any case, by the co-operative society or the other body, to such extent, if any, as the Registrar may direct; and (c) in any case, by a person convicted of an offence in proceedings instituted as a result of the investigation, to such extent, ifany, as the Court by which the person was convicted may order, 216 Act 8 Co-operative Societies 2011 and a person liable under any ofparagraphs (a) to (c), shall be entitled to contributions from any other person liable, under the same paragraph, according to the amount of their rcspecti ve liabilities. (7) Where an examination undertaken pursuant to this section reveals substantial irregularities in the business of the co-operative society, the Registrar may choose not to direct any members on whose motion the examination was commenced, to defray the expenses. Inve.stigations 188.-{ 1) A member, the Registrar or any interested by Court person may apply ex parte, or on any notice that the Court may require, to the Court, for an order directing an investigation to be made of the co-operative society and any of its member co-operative societies. (2) On an application under subsection (1), the Court may order an investigation of a co-operative society or of My of its member co-operatives, where it appears to the Court that- (a) the co-operative society is not fulfilling the purpose stated in its bye-laws; (b) the co-operative society is not carrying on business in accordance with this Act, the Regulations or the bye-laws; (c) the co-operative society is not organized or being operated on co-operative principles; (d) the business ofthc co operative society or any of its member co-operati vc societies is or has been carried out, with intent to defraud any person; 2011 Co-operative Societies Act 8 217 (e) the business or affairs of the co-operative society or any of Its member co-operative societies are, or have been carried on or conducted, or the powers of the directors are or have been exercised, in a manner that is oppressive or unfairly prejudicial to, or that has unfairly disregarded the interests of a member or of a security holder; (f) the co-operative society Or any of its member co-operative societies was formed for a fraudulent or unlawful purpose, or is to be dissol vcd for a fraudulent or unlawful purpose; or (g) persons concerned WIth the formation, business or affairs of the co-operative society or any of its member co-operative societies, have acted fraudulently or dishonestly, in connection with the co-operative society. (3) An applicant for an order under this section is not required to give security for costs. (4) An ex parte application under this section shall be heard in camera. (5) A person shall not publish anything relating to ex parte proceedings conducted under this section other than with the authorization of the Court, or the written consent of the co-operative society being investigated,

189 — In connection with an investigation under section Court order

189. In connection with an investigation under section Court order. 188(1), the Court may make any order it considers appropriate, including an order- 218 Act 8 Co-operative Societies 20lJ (a) to investigate; (b) appointing an investigator, who may be an employee of the Registrar, fixing the remuneration ofan investigator and replacing an investigator; (c) determining the notice to be given to any interested person, or dispensing with notice to that person; (d) authorizing an investigator to enter any premises in which the Court is satisfied there might be relevant information, and to examine anything, and make copies ofany document or record found on the premises; (e) requiring any person to produce documents or records to the investigator; (f) authorizing an investigator to conduct a hearing, administer oaths, and examine any person on oath, and prescribing rules for the conduct of the hearing; (g) requiring any person to attend a hearing conducted by an investigator, and to give evidence on oath; (h) giving directives to an investigator or any interested person, on any matter arising in the investigation; (i) requiring aninvestigator to make an interim or final report to the Court, and to the Registrar: 2011 Co-operative Societies Act 8 219 CD determine whether a report of an investigator made under paragraph (i) should be published and, where published, ordering the Registrar to publish the report in whole, or in part or to send copies to any person the Court designates; (k) requiring an investigator or an examiner appointed under section 186, to discontinue an investigation; and (I) requiring the co-operative society or a person who made an application under section 188(1), [or an order to pay the costs of the investigation. 190.--{ 1) An investigator appointed under section 189(b) Powers of investigator. shall have the powers set out in the order appointing him or her. (2) In addition to the powers set out in the order appointing an investigator, the investigator may provide to, or exchange information and otherwise co-operate with, any public official in Grenada or elsewhere who- (a) is authorized to exercise investigatory powers; and (b) is investigating, with respect to the co-operati ve society, an allegation 0 f improper conduct that is the same as, or similar to, thc conduct described in section 188(2).

191 — (1) An interested person may apply to the Court for Hearing in

191.-(1) An interested person may apply to the Court for Hearing in an order, that a hearing conducted by an investigator camera appointed under section 189 be heard in camera, and for directions on any matter arising in the investigation. 220 Act 8 Co-operative Societies zot t (2) A person whose conduct is being investigated or who is being examined at a hearing conducted by an investigator appointed under section 189(b), has a right to be represented by an attorney-at-law. Incnrninatrng 192.---(1) A person shall not be excused from attending evidence. and giving evidence and producing documents and records to an investigator appointed under section 189(b), by reason only that the evidence tends to incriminate the person, or subject the person to any proceedings or penalty. (2) Evidence described in subsection (l) shall not be used or received against any person in any proceeding instituted against the person, other than a prosecution for perjury in giving evidence. Absolute 193.---{1) An oral or written statement or report made privilege respecting during the course of, or as the result of, an investigation or statements . examination authorised by this Part by an investigator or an examiner, or by any other person acting in accordance with powers conferred by this Part, in respect ofan investigation or examination, shall have absolute privilege. (2) Nothing in this Part affects the privilege that exists in respect of an attomey-at-law and his or her client. PART XIII DISPUTES Settlement of 194.---(1) Where any dispute that relates to the business of disputes, a co-operative society arises- (a) among members, fanner members and persons claiming through members or deceased members; 2011 Co-operative Societies Act 8 221 (b) between a member, former member or person claiming through a member or a deceased member, and the co-operative society, its Board, or any officer of the co-operative society; (c) hetween the memher and the co-operative society arising out of, or under any bye-law relating to the disposal of the produce of agricultural or animal husbandry, or under any contract made under this Act; (d) between the co-operative society and any other co-operati ve society; or (e) between the co-operative society and its Board, committee mem ber or employee, any party to the dispute may refer it to the Registrar for a decision. (2) The Registrar may, before proceeding to hear or determine a dispute, may make or cause to be made a preliminary investigation-- (a) to ascertain the cause; (b) to define the issues; and (c) to bring about a voluntary settlement between the parties to the dispute. (3) The Registrar may either hear the dispute, or delegate authority to hear the dispute, to an employee or an office holder, and make and issue a decision, or it may 222 Act 8 Co-operative Societies 2011 appoint an arbitrator, who shall be an attorney-at-law of at least five years standing, to do so. (4) For the purposes of hearing any dispute, the Registrar or the arbrtrator appointed by the Registrar- (a) may administer oaths; and (b) may require~ (i) the attendance of all parties concerned and witnesses; and (ii) the production of all books, documents and things relating to the dispute. (5) The Registrar or the arbitrator, may order the expenses of determining any dispute, including fees to a barrister and solicitor, to be paid by the co-operative society, or by any of the parties to the dispute. (6) A party aggneved by a decision of the Registrar or an arbitrator, may appeal to the Tribunal within such time and in such manner as may be prescribed. (7) Notwithstanding anything in this section, a co-operative society may exercise any rights arising by law under any charges, mortgages, bills of sale, or other securities duly executed in accordance with this Act or any other law, without recourse to arbitration. (8) For the purposes of subsection (I), a claim by a co-operative society for any debt or demand due to it from u member, former member, or the personal representative of a deceased member, is a dispute that relates to the business of a co-operative society within the meaning of subsection (1). 2011 Co-operative Societies Act 8 223 195.--( 1) There shall be a Co-operative Societies Appeals Co-operative Societies Tribunal which shall comprise three persons appointed by the Appeals Tnbunal, Minister as follows: (a) one member who shall be an attorney-at-law of at least five years standing; (b) one member shall be appointed on the recommendation of the Apex body; and (c) one member who shall be appointed by him acting on the advice of Cabinet. (2) The Tribunal shall have jurisdiction to hear appeals against a decision of the Registrar or an arbitrator. (3) The Schedule shall have effect with respect to the constitution and procedure of the Tribunal. (4) The Minister may, by regulations made under this Act, amend Part 2 of the Schedule, and such regulations shall be subject to affirmative resolution of Parliament. 196.---{1) In accordance with the provisions of the Case .Staled on " . Arb itration i question oflaw. A ct an d notwiith stan di111g any thomg contame d 111 ° sections 194 and 195, the Registrar or an arbitrator may, in the course of, or on making a decision in a dispute, refer a question of law arising therefrom to the Court, by way ofcase stated for the opinion ofthat Court. (2) A judge may consider and determine any question of law so referred, and the opinion given on such question shall be final ami binding. 224 Act 8 Co-operative Societies 2011 Enforcement of 197.-{1) An award by the Registrar or an arbitrator may, award and recovery of by leave of the Court, be enforced in like manner as a loans. judgment or order with the same effect, and where leave is so given, judgment may be entered in terms of the award. (2) Where a dispute relates to the recovery of a loan made by a co-operative society to a member of that co-operative society, such a dispute may, notwithstanding section 194, be brought before the magistrate, for the district in which the co-operative society conducts business. (3) A magistrate shall have jurisdiction under subsection (2), even though the amount due exceeds the limit of jurisdiction of a magistrate specified in the Magistrates Act. PART XIV SPECIALIZED CO-OPERATIVE SOCIETIES Credit Unions Functionsof Registrar, 198.---(1) The Registrar shall administer the system of Immunity, regulation and supervision ofcredit unions provided for under Sanctions i:lfIU Corrective this Act, with a view to- Action, (a) the protection by each credit urnon of the funds of its members; and (b) the maintenance of financial stability and well-being in credit unions generally. (2) The Registrar shall have power to do anything which, in his or her opinion, is necessary to facilitate the exercise of its functions, or is incidental to or consequential on their exercise, and, in the exercise ofany such power, the 2011 Co-operative Societies Act 8 225 Registrar may consult such other bodies as appear to him or her, to be expert or knowledgeable in matters relating to credit unions. (3) The registration of a credit union or the imposition of any prudential, supervisory or reporting requirements or conditions by the Registrar, shall not constitute a warranty as to the solvency ofthe credit union to which registration is given, and the Registrar shall not be liable, in respect ofany losses incurred through the insolvency or default of a co-operative society, which is registered as a credit union. (4) Where after an examination under section 186 or after an investigation under section 187, or on the receipt of any other information, the Registrar is of the opinion, that it is necessary to act in the interest of the orderly and proper regulation of the business of a credit union, in addition to the powers conferred by section 5, the Registrar may- (a) place the credit union under administrative supervision; and (b) take any other necessary action to correct the non-compliance or unsafe or unsound practice, including- (i) prohibiting the disposal, conveying or encumbering of any of the credit union's assets; (ii) prohibiting the incurring by the credit union of any debt, obligation or liability; (iii) prohibiting the investing of any of the credit union's funds; 226 Act 8 Co-operative Societies 2011 (iv) prohibiting the withdrawal of any ofthe credit union's accounts at other financial institutions; (v) suspending the credit union's acquisition of fixed assets; (vi) suspending or restricting the credit union's lending operations; and (vii) increasing the credit union's allocation to reserves. (5) The credit union shall comply with the requirements ofthe Registrar under subsection (4), and where the credit union fails to do so, the Registrar may appoint an administrator for the credit union, for a period not exceeding twelve months. (6) If at any time the Registrar determines that the credit union is not in condition to continue business under the administrator, in the interest of the members, depositors or creditors and in accordance with section 156, the Registrar may appoint a receiver or a receiver-manager for the credit umon. (7) All costs incidental to the period of administrative supervision, will constitute an allowable charge against the assets of the credi t union, and shall be paid as the Registrar may determine. Restrictions. 199.---(1) A credit union shall not underwrite insurance or the issue of securities by another person. (2) Nothing in subsection (l) shall prevent a credit urnon from requiring insurance for the security of the credit union. 2011 Co-operative Societies Act 8 227 (3) A credit union shall not demand from a potential borrower that- (a) any additional services, including appraisal valuations or security, be obtained from a specific provider; or (b) the borrower should utilize any other services of the credit union, as a condition of, or in consideration of. obtaining a loan. (4) Subjcctto subsection (5), a credit union may only hold real property the aggregate market value of which does not exceed ten per cent of its total assets, (5) Notwithstanding subsection (4), the Registrar may, ifthe Registrar is satisfied that the circumstances require it, grant approval to a credit union to hold real property, in excess of the percentage specified in subsection (4). (6) Subsection (5) shall not apply where the credit union exercises it'> legal right in respect of any property which is the security for any debt, and in such a case, the property shall not be retained for a period in excess of five years without the permission of the Registrar, unless in the meantime, the aggregate value ofthe real property held by the credit union is reduced to below the percentage specified in subsection (4). (7) Nothing in subsection (4) shall be interpreted as requiring a credit union- (a) to dispose of any real property that was acquired before the coming into force of this Act; or 228 Act 8 Co-operative Societies 2011 (b) to terminate any agreement to acquire or hold any real property, where the agreement was entered into before the coming into force of this Act. (8) Without prejudice to the generalit}' of subsection (l), a credit union may, with the permission of the Registrar, do all other acts and things as arc incidental or l:UILUUClve to or consequential upon the attainment of its objects. Liquid assets. 200.---{l) A credit union shall, at all times, keep a proportion of its total assets in liquid form as prescribed in the Regulations, a" will enable the credit union to meet its liabilities as they arise. (2) For the purpose of complying with subsection (I), a credit union shall ensure that no less than fifteen per cent, or such greater percentage as may be specified by the Registrar from tune to tunc, of its members unencumbered deposits, and other short term liabilities, are maintained in a liquidity reserve; but nothing in this Act shall be taken to prevent a credit union keeping liquid assets, in addition to those required for complying with subsection (I). (3) Subject to section 125( 1)(b), a credit union shall not capitalise its statutory reserves by way of bonus shares, or distribute it by dividends. (4) Despite the provisions of section 125(1)(b), whenever the Board of a credit union so recommends to the members and a majority of the members present, and voting at a general meeting by resolution so approve- (a) the aUCleation to its statutory reserves may be increased; or 2011 Co-operative Societies Act 8 229 (b) if its statutory reserves at the end of the financial year in question equals or exceeds ten per cent of assets, the allocation may be reduced. 201.---(1) A credit union shall at least annually evaluate Loan loss the quality and collectability of the loan portfolio and provisions. establish adequate loan loss allowance. (2) The Registrar may, in accordance with the standards prescribed by PEARLS, issue guidelines to implement the requirement for an adequate loan loss allowance. 202.--(1) A loan made by a credit union, shall be Loan approval. approved in accordance with the policies established by the directors, before any funds are advanced. (2) A loan to a director, officer, committee member or an employee of a credit union or an associate of any of them, shall be approved in the manner prescribed. (3) A person who knowingly approves or grants a loan by a credit union in contravention of this Act or the Regulations, shall be held liable for any losses resulting to the credit union in connection with that loan. 203.--( 1) Subject to any restrictions that may be Security for prescribed in the Regulations, a credit union may take any loans. security for loans and other risk assets that it considers advisable, and in keeping with sound business and risk management practices. (2) For the purposes of this section, "risk assets" means loans, investments and other property of the co-operative society with possible loss results, which form the basis of determining the amount of the co-operative society's income to be set aside as provision for loss. 230 Act 8 Co-operative Societies 2011 Loan limits.

204 — The limits on the amount of loans made by a credit

204. The limits on the amount of loans made by a credit union shall be in accordance with section 121. Reporting 205.--(1) Where a credit union is reporting loans, it shall Ioans. report the loans at their fair value deducting provision for loan impairment on the balance sheet in its annual financial statements under section 201. (2) Any advance given by way of overdraft or line of credit, is deemed to be a loan for the purpuses of the balance sheet, and shall be reported as a loan. Interest on loans.

206 — ( I) The maximum intervals at which interest on

206.-( I) The maximum intervals at which interest on loans made by a credit union are to be paid, may be prescribed in the Regulations. (2) The rate of interest to be charged on loans shall be fixed from time to time by the Board. (3) Where a borrower has not paid the interest on a loan for a period determined in the Regulations, the credit union shall not include that interest in income. Acceptance of 207.~(l) Subject to section 123, a credit union may deposits. accept deposits- (a) from members; (0) from other co-operative societies; (c) from government and non-government agencies; and (e1) bodies corporate 2011 Co-operative Societies Act 8 231 (2) Deposits may be accepted in the manner and form and on any condition that may be prescribed in the Regulations. 208.---(1) A credit union is not bound to see to the Credit unions and trusts. execution of any trust, whether express, implied or constructive, to which any deposit or share is subject. (2) Where any deposit or share is subject to a trust of which the credit union has notice, the receipt or order- (a) of the trustee in whose name the deposit or share stands; or (b) if the deposit or share stands in the names of two or more trustees, all those trustees or any of them who, under the document creating the trust, may be entitled to receive the deposit or share, is, notwithstanding any trust to which the depositor's share is subject, a sufficient discharge to the credit union for the payment of any money payable in respect of the deposit or share, and the credit union is not bound to see to the application of any money paid on the receipt or order. (3) Notwithstanding any neglect or omission on the part of a credit union to enter a proper description in its books, an executor, an administrator, a guardian, a committee or a trustee who is entered on the books ofthe credit union as a member, or who is described as representing a named estate, trust or trust beneficiary in such capacity, shall not be personally liable to the credit union with respect to the share that he or she represents. 232 Act 8 Co-operative Societies 20]1 (4) The estate or trust beneficiary represented by a person described in subsection (3) continues to be liable to the credit union, in the same manner, and to the same extent, as if the testator, minor, ward, person of unsound mind, beneficial trust or their trust beneficiary, were entered on the records of the credit union as the holder of the shares. Consumers Co-operative Societies and Housing Co-operative Societies Restrictions on directorship.

209 — (1) Subject to subsection (2), an employee of a

209.-(1) Subject to subsection (2), an employee of a consumers' society, or housing society or service society shall not be a director of the society. (2) A society shall provide in its bye-laws, that none of its elected directors shall be employees. Relationship

210 — The relationship between a housing co-operative

210. The relationship between a housing co-operative with members. society and its members is not a relationship between a landlord and his or her tenants. Bye-laws.

211 — The bye-laws of a housing co-operative society shall

211. The bye-laws of a housing co-operative society shall include, in addition to the matters required by section 13- (a) the manner in which each member may be required to provide capital for the purposes of the co-operative society; (b) the manner in which a member may be required to pay for housing charges or other reserves; (c) the basis for fixing the amount of housing charges; 2011 Co-operative Societies Act 8 233 (d) subject to section 30, the manner of withdrawal by a member and the repayment of a member's interests in the co-operative society; and (e) the rules governing any leases ofhousing units by members to non-members.

212 — Where the bye-laws of a co-operative society provide Amendment

212. Where the bye-laws of a co-operative society provide Amendment bye-laws. of that it is a housing eo-operative sociery or that this Part applies to the co-operative society, the co-operative society may not repeal or amend that provision of the bye-laws without the consent of the Registrar.

213 — Where a housing co-operative society has a share No dividend on

213. Where a housing co-operative society has a share No dividend on 1 t h e co-operative capital, o . society . s h a11 not pay any diI VIid en d on share capital. the share capital to its members. 214.-{l) Where a person's membership in a housing Rightto co-operative society is terminated, any right ofthat person to =~~~~ possess or to occupy residential premises acquired by virtue of membership in the co-operative society is terminated. (2) Where a person's membership in a honsi ng co-operative society is terminated and the member does not give up possession ofthe housing unit he or she occupies, the housing co operative society may apply to the Court to recover possession, or to recover any arrears of housing charges. 215.-{1) Where a member of a housing co-operative Abandoned goods. society- (a) has his or her membership terminated, or has vacated or abandoned the housing unit formerly occupied by him or her; and 234 Act 8 Co-operative Societies 2011 (b) has left property in the housing unit, the co-operative society may apply to the Magistrate's Court for an order authorising it to remove the property from the housing unit and seIl or otherwise dispose of it (2) The Magistrate may make an order under subsection (l), where the Magistrate is satisfied that the housing co-operative society has made a reasonable effort to locate the former member. (3) Where a housing co-operative society sells or otherwise disposes of property under all older made under subsection (2), it shall pay into the Magistrate's Court, to the credit of the former member, any remaining proceeds of the disposition after deducling- (a) any amount with respect to costs incurred by it, relating to the disposition that it would be authorized to retain, if the property were goods sold under distress for housing charges; and (b) any arrears of housing charges and damages that the Magistrate allows. (4) Where a former member docs not claim the remaining proceeds described in subsection (3), within three months after the date the money was paid into the Magistrate's Court, the money shall be paid into the Consolidated Fund. (5) Where a housing co-operative society removes, sells or otherwise disposes of property under an order made under subsection (2), the housing co-operative society is not liable in any action taken by the former member, with respect to the removal, sale or disposition. 2011 Co-operative Societies Act 8 235 Industrial Co-operative Societies 216.--(1) In an industrial co-operative society, Membership. seventy-five per cent of all employees shall be members of the co-operative society. (?) An industrial co-operative society shall not subcontract out marc than fifty per cent of its work without the consent of the Registrar.

217 — In addition to the matters required to be set out in the Bye-laws

217. In addition to the matters required to be set out in the Bye-laws bye-laws under section 13, the bye-laws of an industrial co-operative society shall include- (a) conditions of admission, expulsion or suspension of its members; (b) a procedure for laying off members when there is a lack of work, and a procedure of recall to work; (c) rem unerati on of workers invol ved in the day to day work of the co-operative society: and (d) allocation of bonus among members.

218 — An industrial co-operative society shall not be Restriction on

218. An industrial co-operative society shall not be Restriction on regislIatlOn. registered where the acquisition of goods for sale to the public, is one of its principal objects stated in its bye-laws.

219 — When allocating among creditors or paying a bonus Bonus based

219. When allocating among creditors or paying a bonus Bonus based on JabolJr. to the members, the directors of an industrial co-operative society may take into account, the labourcontribution of cach member. 236 Act 8 Co-operative Societies 2011 Employees may

220 — Directors of an industrial society may be employees

220. Directors of an industrial society may be employees be directors. of the society. PART XV APEX BODY Establ ishment and constitution

221 — Co-operative societies may establish an apex body,

221. Co-operative societies may establish an apex body, of apex body which shall be composed of such member representatives of the majority of co-operative societies, which may exist in Grenada. Functions.

222 — The apex body shall be a co-operative society under

222. The apex body shall be a co-operative society under this Act, and shall co-ordinate, assist and promote activities for the development, growth and expansion ofall co-operative societies, and shall perform representational and other functions, as may be determined by its constituent members, including- (a) assisting with the formation and readiness for registration of viable co-operative societies; (b) the initiation and encouragement of capacity activities beneficial to co-operative societies; (c) liaison and co-ordination with all CO-l) perative societies; (d) stimulation of community awareness and public confidence; and (e) representation of the interests of the co-operative sector. 2011 Co-operative Societies Act 8 237 223.--( I) The officers ofthe apex body shall be elected at Officers. the first meeting of that body, and shall hold office for a period of one year, and thereafter the election of such officers shall be in accordance with the bye-laws of the apex body. (2) The apex body shall regulate its own procedure, and may establish its own central credit union or central co-operative society, in conjunction with other apex bodies and co-operative societies, to provide specialized services and facilities to members.

224 — The Registrar shall from time to time consult the Consultation by

224. The Registrar shall from time to time consult the Consultation by '.. ' Registrar. apex body or a central credit union or central co-operative society, with respect to matters relating to the development of co-operative societies. PART XVI OFFENCES

225 — ( I) A member, agent or employee ora co-operative corrupt

225.-( I) A member, agent or employee ora co-operative corrupt society shall not accept, agree to accept, obtain or attempt to PbrabectlccS and h obtain wether for hiimse If or another, any gift or n ry. consideration as an inducement reward for- (i) doing, or forbearing to do, any act relating to the business of the co-operative society; or (ii) for showing favour or disfavour to any person, in relation to the business of the co-operative society. (2) A person shall not give, agree to give, or offer such gift or consideration to any member, agent, or employee of a co-operative society, as inducement or reward for any purpose mentioned in subsection (1). 238 Act 8 Co-operative Societies 2011 (3) A person who contravenes subsection (1) or (2) commits an offence and is liable- (i) on summary conviction, to a fine not exceeding ten thousand dollars, or to imprisonment for a term not exceeding two years, or to both; or (ii) on conviction on indictment, to a fine not exceeding fifty thousand dollars or to imprisonment for a term not exceeding three years, or to both. (2) In this section "consideration" includes valuable consideration of any kind. falsely obtaining 226.--(1) A person shall not- 1""l"'lly or co-operanve society, (a) obtain possession of any property or the grant of a loan from a co-operative society, by false representation or other corrupt means; (b) wrongfully withhold or misapply any property belonging to or loan from a co-operate society; or (c) wilfully apply any part of property belonging to, or loan from, a co-operate society for purpose~. other than those directed or expressed in the bye-laws of the co-operative society, or authorized in this Act ar the Regulations. (2) A person who contravenes subsection (1) commits an offence and is liable- zon Co-operative Societies Act 8 239 (a) on summary conviction, to a fine not exceeding five thousand dollars or to imprisorunent for a term not exceeding six months, or to hath; or (b) 011 conviction on indictment, to a fine not exceeding twenty thousand dollars or to imprisonment for a term not exceeding two years, or to both. (3) In any proceedings under this section the person accused may, in addition to any penalty imposed, be ordered- (a) to deliver up any property or repay any sum of money to whieh the proceedings relate; and (b) pay the cost of the proceedings. Failure to 227.~-(1) A person shall not- comply with Act, etc.•. (a) fail, without reasonable cause or wilfully neglect, or refuse to comply with requirement of this Act or the Regulations or to provide any information in circumstances for which a penalty is not provided elsewhere in this Act; or (b) purporting to comply with a requirement for information under this Act, provide infor- mation which the person knows to be false. (2) A person shall not wilfully or without reasonable cause, disobey any summons, order or direction lawfully issued under this Act or the Regulations. 240 Act 8 Co-operative Societies 2011 (3) A person shall not knowingly alter, destroy, mutilate, conceal, cover or falsify or make a false entry in any record or document of, Or belonging to, a co-operative society, with intent to impede, disrupt, or influence an investigation or the proper admiulsuation of any matter. (4) An officer or member of a co-operative society, shall not wilfully contravene the bye-laws ofthe co-operative society in relation to his or her duties or functions as such officer or member. (5) A person who contravenes subsection (1), (2), (3) or (4) commits an offence, and is liable, on summary conviction to a fine not exceeding twenty thousand dollars or to imprisonment for a term not exceeding two years, or to both. Dealing in 228.--( 1) A person shall not- property subj ect to charge. (a) fraudulently remove any property comprised ill a charge created ill favour ofa co-operative society, from the place where such property was situated at the time of the execution of the charge; or (h) knowingly dispose of or deal with or attempt to dispose of, or deal with such property, without first obtaining in writing, leave of the co-operative society. (2) A person who contravenes subsection (1) commits an offence and is liable, on summary conviction, to a fine not exceeding five thousand dollarsor to imprisonment for a term not exceeding six months, Or to both. 2011 Co-operative Societies Act 8 241 (3) The Court may, in addition to any penalty j rnposed 011 a person under subsection (1 ), require that person to repay such amount ofthe loan with interest, as has not been repaid at the date of the conviction, and the payment of that amount shall discharge the liability of the borrower to repay the loan. 229.--{ I) A person shall not make, or assist in making a Offences with report, return, notice or other document, required by this Act repo respertct.lD s or the Regulations, to be sent to the Registrar, to any other person, that- (a) ~ont;jins:ln untrue state ment of a material fact; or (b) omits to state a material fact required in the report, or necessary to make a statement contained in the report, not misleading in the light of the circumstances in which it was made. (2) A person who contravenes subsection (1) corrunits an offence and is liable, on summary conviction in the case of an individual, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding six months, or to both; or in the case of a person other than an individual, to a fine not exceeding ten thousand dollars. (3) A person does not commit an offence under subsection (2), where the untrue statement or omission was unknown to him or her, and in the exercise of reasonable diligence, could not have been known to him or her. (4) A director, officer, employee Or agent of a co-operative society sha1l11ot- 242 Act 8 Co-operative Societies 2011 (a) obstruct any person who is carrying out an examination under section 186; or (b) obstruct the examination of a co-operative society undertaken under section 186_ (S) A person who contravenes subsection (4) commits an offence and is liable on sununary conviction to a fine not exceeding five thousand dollars or imprisonment for a term not exceeding six months or to both, or on conviction on indictment to a fine not exceeding twenty thousand dollars or imprisonment for a term not exceeding two years or to both. Contravention uf the Act and

230 — ( 1) A person shall not

230.-( 1) A person shall not- Regulations (a) fail to give any notice, or fail to send any return or document that is required for the purpose ofthis Act; or (b) fail to hold an annual or special general meeting within the stipulated or extended time, in conformity with sections 42, 43 and 44 of the Act. (2) A persnn who ~nntr~v~nes"llbser:tinn (1) commits an offence and is liable, on summary conviction- (a) in the case of a first offence, to a fine not exceeding five thousand dollars; (b) in the case of a subsequent offence, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding six months. 20ll Co-operative Societies Act 8 243 (3) Where a body corporate commits an offence under this Act or the Regulations, and the offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of- (a) any director, manager, secretary or other similar officer ofthe body corporate; or (b) any person who was purporting to act in such capacity, he or she, as well as the body corporate, shall commit the offence, and be liable to be proceeded against and punished accordingly. (4) For the purposes of subsection (2), "director", in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate. (5) The Regulations may create an offence punishable, on summary conviction, by a fine not exceeding twenty thousand dollars or imprisonment for a term not exceeding two years, or to both. . Use 01 • -ords

231 — ( 1) A person shall not, 10 doing business In "credit union"

231.-( 1) A person shall not, 10 doing business In "credit union" Grenada- and "co-oper ati VL;.'~. (a) use the words "credit union" or "co-operative" or any abbreviation or derivation thereof as part of the name of the business, or with respect to goods, wares, merchandise or services, or the person's method ofconducting business; or (b) hold himself or herself, or his or her business. to be a registered co-operative society unless the person, or his or her business, is registered under this Act. 244 Act 8 Co-operative Societies 2011 (2) A person who contravenes subsection (I) commits an offence and is liable, on summary conviction, 10 a tine not exceeding five thousand dollars or to imprisonment for a term not exceeding six months, or to both. Court order to comply.

232 — Where a person is convicted of an offence under this

232. Where a person is convicted of an offence under this Act or the Regulations, the Court may, in addition to any punishment imposed, order the person to comply will! the provision of this Act or the Regulations, [or the contravention of which he or she has been convicted. Limitation.

233 — The effluxion of time is no bar to prosecution for an

233. The effluxion of time is no bar to prosecution for an offence under this Act. Presen>atjon of civil remedy.

234 — A civil remedy for an act or omission under this Act,

234. A civil remedy for an act or omission under this Act, is not suspended or affected by reason that the act or omission is an offence under this Act. PARTxvn MISCELLANEOUS Interpretation.

235 — In this Part

235. In this Part- "duplicate originals" means the two copies of the bye-laws or statements required in section 236; and "statement" means a special resolution stating an intent to dissolve, mentioned in section 164. l,;xeeutlon ana 236.--{1) Where this Act requires that bye-laws, or a filing. statement relating to a co-operative society shall be sent to the Registrar, unless otherwise specifically provided, the co-operative society shall send three copies ofthe bye-laws or statement signed by a director, Of an officer of the co-operative society. 2011 Co-operative Societies Act 8 245 (2) Subject to the other provisions ofthis Act, where the Registrar receives duplicate originals of any bye-laws or statement under subsection (I), and they are accompanied by any other required documents and the prescribed fees, the Registrar shall- (a) endorse on each ofthe duplicate originals, the word "Registered" and the date of the registration; (b) issue, in duplicate, the appropriate certificate, and attach to each certificate, one of the duplicate originals of the bye-laws or statements; (c) file a copy of the certificate and attached bye-laws or statement; (d) send to the co-operative society, the original certificate and attached bye-laws or statement; and (e) publish in the Gazelle, notice of the issue of the certificate. (3) The Registrar may date a certificate mentioned in subsection (2), as of the day it receives the bye-laws or statement issued under which the certificate is issued, or as of any later day specified by the person who signed the bye-laws or statement (4) A signature required on a certificate mentioned in subsection (2), may be printed or otherwise mechanically produced. 246 Ad8 Co-operative Societies 20ll Waiver of notice.

237 — Where a notice or document is required by this Act or

237. Where a notice or document is required by this Act or the Regulations to be sent, the sending of the notice or document may be waived, or the time for sending the notice or document may be waived or abridged at any lime, with the consent in writing, of the person entitled to receive the notice or document. Certificate of 238.~1) A director or officer of a co-operative society co-operative may~~ society (a) sign a certificate stating any fact set out in; or (b) certify a copy of the whole or any part of, the bye-laws, or any other contract to which the co-operative society is party, or the minutes of a meeting of the directors, a committee of directors or the members. (2) A certificate or certified copy described in subsection (I), is admissible in evidence as prima facie proof of the facts contained in the certificate or certified copy, without proof of the signature or official character of the person appearing to have signed the certificate or the certification. Documents.

239 — (1) Where a notice or document is required to be

239.-(1) Where a notice or document is required to be sent to the Registrar under this Act, the Registrar may accept a photo-static or photographic copy ofthe notice or document. (2) A person is not affected by. or presumed to have notice or knowledge of, the contents of a document concerning a co-operative society, by reason only that the document has been filed with the Registrar, or is available for inspection at any office of the co-operative society. 2011 Co-operative Societies Act 8 247

240 — Where the Registrar is authorized tu du so, by the Alteration

240. Where the Registrar is authorized tu du so, by the Alteration. person who sent a notice or document or his or her representative, the Registrar may alter the notice or document, but it may not alter an affidavit or statutory declaration. 241.~( I) Where there is an error in the bye-laws, a notice, Rectification and correction. a certificate or any other document, the directors or members shall, on the req uest of the Registrar- (a) pass any necessary resolutions; (b) send to the Registrar, the relevant documents required to comply with this Act; and (c) take any other steps that the Registrar may reasonably require, in order that the Registrar may correct the bye-laws, notice, certificate or document. (2) Before making a correction under subsection (L), the Registrar shall be satisfied that the correction would not prejudice any ofthe members or creditors ofthe co-operative society. (3) The Registrar may, at the request of a co-operativc society, or of any other interested person, accept a corrected version of any of the documents referred to in subsection (I) ie: (a) the correction is approved by the directors of the co-operative society; and (b) the Registrar is satisfied that the correction would not prejudice any of the members or creditors of the co-operative society. 248 Ad8 Co-operative Societies 2011 (4) If in the view of- (a) the Registrar; (b) the co-operative society; or (c) any interested person. a correction to any of the documents referred to in subsection (1) above, would prejudice a member or a creditor of the co-operative society, the Registrar, the co-operative society or the person, may apply to the Court for an order that the document be corrected, and for an order determining the rights of the members or creditors. (5) An applicant under subsection (4), shall give the Registrar notice of the application, and the Registrar shall be entitled to appear and to be heard and represented by a member of the stan ofthe Registrar, or by an attorney-at-law. (6) A corrected document shall bear the date of the document it replaces. (7) If a corrected certificate materially amends the terms of the original certificate, the Registrar shall, without delay, give notice of the correction in the Gazette, and in a newspaper published and circulated in Grenada. (8) The Registrar may, on its own initiative, correct any~ (a) linguistic error; (b) error of transcription; (c) clerical error; or 2011 Co-operative Societies Act 8 249 (d) mistake where the error is made by the Registrar or where the error is not substantive in nature. 242.---(1) A co-operative society registered under this Act Exemption from stamp duty and is exempt from any stamp duty, taxes and fees, with which, other taxes. under any law for the time being in force, instruments executed by or on behalf of such co-operative society, or by an officer or member, and relating to the business of such co- operative society, or any class of such instruments, are respectively chargeable. (2) Notwithstanding the provisions of any other law in force in Grenada, a co-operative society shall be exempt from the payment of income tax, corporation tax and any other tax, on the incomes of such co-operative society. (3) Notwithstanding the provisions of any other law in force in Grenada providing for the payment of customs duties, consumption taxes, excise taxes, environmental levy or customs service charge, the Minister in Cabinet, may by Order published in the Gazette, exempt a society registered pursuant to this Act, from liability to customs duties, consumption taxes, excise taxes, environmental levy or customs service charge on goods imported by the society.

243 — Except as is expressly provided in this Act, a civil Limitation of

243. Except as is expressly provided in this Act, a civil Limitation of court shall not have any jurisdiction in respect of any matter jurisdiction. concerned with the dissolution of a co-operative society, under this Act. 244.~(1) A copy ofany entry in a book or other document Proof of entry in books and other that is required to be kept by this Act shall. if certified by the do-cuments. Registrar, be received in any legal proceedings, civil or 250 Act 8 Co-operative Societies 2011 criminal, as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where. and to the same extent as, the original entry itself is admissible. (2) An officer uf a co-operative society shall nUL, in any legal proceedings to which the co-operative society is not a party, be compelled to produce any of the co-operative society's books, the content of which can be proved under subsection (1), or to appeal as a witness to prove any matters, transactions or accounts therein recorded, unless the Court for special reasons so directs. lmrnumty of Registrar and

245 — The Registrar or any other person exercismg a

245. The Registrar or any other person exercismg a staff. function under this Act, shall not be liable in damages for anything done or omitted in the discharge or purported discharge oftheir respective functions under this Act or under the Regulations, unless it is shown that the act or omission was in bad faith. Abandoned 246.---( I) Su bject to subsection (2), where there has been property no activity relating to the property specified in paragraphs (a) and (b) for a period of 15 years except for the posting of interest and dividends, the property specified in paragraphs (a) and (b), which are held or owing by a co-operative society shall be presumed to be abandoned- (a) any general deposit, demand, savings or matured timc deposit made in Grenada with a credit union, together with any interest or dividend, but excluding any lawful charges thereon; 2011 Co-operative Societies Act 8 251 (b) any funds paid in Grenada toward the purchase ofshares or other interests in a credit union, together with any interest or dividend, but excluding any lawful charges thereon, where there has been no activity for one year. (2) The property specified in P3f::lV"3ph (3) Of (b) of subsection (1) shall not be presumed abandoned unless correspondence by the credit union has been issued to the owner's last known address at least once every three years, reminding the owner, that if no activity is evidenced for a period of 15 years, the property is deemed to be abandoned. (3) The property specified in paragraph (a) or (b) of subsection (I), shall not be presumed abandoned if the owner has, within 15 years ofthc establishment ofthe account- (a) increased or decreased the amount of the deposit or funds; (h) presented the " passbook for the crediting of interest or dividends; (c) corresponded in writing, with the credit union, concerning the property; or (d) otherwise indicated an interest in the property. (4) Where any contents of a safety deposit box on WhICh the lease or rental has expired, and concerning which notice of the intention Of the credit union to deliver the contents thereof into the custody of the Minister responsible for Finance has been sent by Registered letter to the last known address of the lessee, and to which the lessee has failed to respond within one year, the contents shall be deemed to be abandoned. 252 Act 8 Co-operative Societies 2011 Regulations. 247.--(1) For the purpose of carrying out this Act, the Minister may make Regulations- (a) defining, enlarging or restricting the meaning of any word used, but not defined in this Act; (b) requiring the payment of, and prescribing the amount of any fee with respect to- (i) the filing, examination or copying or any document; Or (ii) any action that the Registrar is required or authorized to take under this Act; (c) prescribing the procedure for appeals to the Registrar; (d) prescribing business in whic h co-operative societies, or any class ofco-operative societies may not engage without the prior approval of the Registrar; (e) exempting any co-operative society or class of co-operative societies, from any provision of this Act; (f) prescribing any other matter or thing required or authorized to be prescribed by this Act; and (g) generally for grvmg effect to and for the efficient operation of the Act. (2) Regulations under this Act may- 20ll Co-operative Societies Act 8 253 (a) make different provisions in relation to different cases or circumstances; (b) apply in respect of particular persons or particular cases, or particular classes of persons or particular classes of cases, and define a class by reference to any circumstances whatsoever; and (c) contain such transitional, consequential, incidental or supplementary provisions as appear to the Minister, to be necessary or expedient fur the purposes of the regulations. PART XVIII TRANSITIONAL

248 — In this Part, "the former Act" means the Co-operative interpretation

248. In this Part, "the former Act" means the Co-operative interpretation. Societies Act, 1996. Existing 249.·~1) The directors and officers of co-operative directors and societies in existence on the coming into force of this Act, officers. shall continue to hold office in accordance with the fanner Act and the bye-laws of the co-operative society. (2) Where new directors ofa co-operative society are to be elected after the coming into force of this Act, such directors shall be elected in accordance with this Act.

250 — All co-operative societies Which,prior to the coming Co-operative

250. All co-operative societies Which,prior to the coming Co-operative into force of this Act were duly registered or deemed to be ;~;;;;:de~~der registered under the former Act, shall be taken to be the ferr-er Act. registered under this Act, and-- 254 Act 8 Co-operative Societies 2011 (a) the bye-laws of a co-operative society, including any amendments of those bye-laws, as registered under the former Act, shall be taken as if registered under this Act; (b) a Register kept in accordance with the requirements ofthe former Act, shall be taken to be part of the corresponding Register to be kept under this Act; (c) a document referring to a provision of the former Act, shall be construed as referring to the corresponding provision of this Act; and (d) all orders, directions, appointments and other acts lawfully made or done under a provision of the former Act, and in force immediately before the coming into force of this Act, shall be taken to have been made or done under the corresponding provisions ofthis Act, and shall continue to have effect accordingly. Repeal 251.--(1) Subject to subsection (2), the Co-operative Societies Act, 1996 is repealed. (2) All rules, regulations and bye-laws made under the former Act, shall continue in force with any necessary amendments, and shall be taken as having been made under this Act, until such time as new rules and regulations and bye-laws are made. (3) Notwithstanding subsection (1), where a co-operative society is being dissolved or liquidated under the former Act, that Act shall continue to apply to that co-operative society and its dissolution or liquidation. 2011 Co-operative Societies Act 8 255 SCHEDULE Section 195 CONSTITUTION AND PROCEDURE OF THE CO-OPERATIVE SOCIETIES APPEALS TRIBUNAL PART 1 Constitution

1 — The Co-operative Societies Appeals Tribunal shall Membership

1. The Co-operative Societies Appeals Tribunal shall Membership consist of three persons, one at whom shall be an attorney-at-law of at least five years standing, who shall be the Chairperson of the Tribunal. ,. . db Appointment.

2 — The members a f the Tribunal shall be appointe y the

2. The members a f the Tribunal shall be appointe y the Minister, after consultation with the apex body, for a period of not more than three years, and shall be eligible for re-appointment. Resignation.

3 — A member may at any time resign his membership by

3. A member may at any time resign his membership by notice in writing, to the Minister. lnability 4.---(1) If the Minister is satisfied that a member- (a) has been incapacitated by physical or mental illness; or (b) is otherwise unable or unfit to discharge the functions of a member, the Minister may, by notice published in the Gazette, declare the office of the member to be vacant, and thereupon, the office shal1 become vacant. 256 Aa8 Co-operative Societies 2011 (2) In case of the temporary absence or inability of a member to act, the Minister may appoint a suitable person to act in that member's place. Publication.

5 — The Minister shall publish 10 the Gazette, notice otthe

5. The Minister shall publish 10 the Gazette, notice otthe appointment and cessation of appointment of a member. Remuneration. 6. The members of the Tribunal shall receive such remuneration as the Minister may prescribe. Validity of 7. The validity of any proceedings ofthe Tribunal shall not proceedings. be affected by any vacancy among the members, or any defect in the appointment of a member. Rules. 8. Subject to this Schedule, the Tribunal shall regulate its own procedure and may make rules for that purpose. PART 2 Procedure Initial 1.~1) An appeal to the Tribunal shall be by notice in Procedure. writing, and sent or delivered to the chairperson of the Tribunal. (2) On receipt of a notice of appeal, the chairperson shall send a copy thereof, {o the other members of the Tribunal. (3) The chairperson of the Tribunal may appoint a secretary, and such other officers as he thinks fit, (or the purposes of the appeal. 2011 Co-operative Societies Act 8 257 2.---( 1) The appellant shall, within 14 days ofthe lodging Statements to he provided of the notice of appeal, provide to the chairperson of the Tribunal, a written statement setting out the facts and grounds on which the appeal is based, and a eopy of such statement shall be forwarded by the chairperson of the Tribunal to the Registrar and, if the appeal is against a decision of an arbitrator, to the arbitrator, and, if the appellant is not a co-operative society, to the co-operative society of which the appellant is a member, and if the appeal is against the decision of the Registrar or an arbitrator in a dispute, to any other party to the dispute. (2) A person or co-operative society to whom a copy of the appellant's statement has been provided shall, within 14 days of the receipt by him of the statement, submit to the chairperson of the Tribunal, a written response to the statement, and a copy of such response shall be sent by the chairperson of the Tribunal to the appellant, and to any other person interested in the appeal ofwhom he or she has notice. (3) The chairperson shall send copies of all statements and responses to the other members of the Tribunal, as SOOn as he or she receives them. further

3 — On application by any person interested in the appeal to particulars,

3. On application by any person interested in the appeal to particulars, whom a copy of the written statement of the appellant or of the response has been sent, or in any case where the chairperson of the Tribunal considers it necessary to do so for the proper resolution of the appeal, the chairperson may require the appellant. or any other person, to provide him or 258 Act 8 Co-operative Societies 20JI her with further particulars in writing, within such time as the chairperson may direct, and the chairperson, on receipt of such particulars, shall provide copies ofsuch particulars to the other interested parties and to the other members of the Tribunal. Notice of

4 — The chairperson of the Tribunal shall, in consultation

4. The chairperson of the Tribunal shall, in consultation hearing. with the other members of the Tribunal, fix a date and place for the hearing of the appeal, and shall give not less than 7 days' notice thereof to the appellant, the Registrar and any other interested party. Procedure at

5 — (1) At a hearing before the Tribunal, the appellant, the

5.-(1) At a hearing before the Tribunal, the appellant, the hearing. Registrar and any other interested party, shall be entitled to appear and to be heard and represented by an attorney-at-law or, in the case of the Registrar, by a member of the Registrar's staff. (2) The Tribunal may admit any duly authenticated written statement or other material, as prima facie evidence of any tact or facts, in any case in which it thinks it just and proper so to do. (3) The Tribunal may, if it thinks fit, call for such documents, and examine such witnesses as appear to it, likely to afford evidence relevant and matenal to the enquiry. (4) The Tribunal may require any party to the enquiry, or any witness in the proceedings, to give evidence on oath and, for that purpose, the chairperson ofthc Tribunal shall have power to administer an oath. 201l Co-operative Societies Act 8 259 (5) If, after notice of a hearing has been duly given, the appellant, the Registrar, or any other interested party, fails to appear at the hearing, the Tribunal may proceed with its enquiry into the appeal, notwithstanding the absence ofall or any of them, or may give such directions with a view to the determination of the appeal, as the Tribunal thinks just and proper. (6) Proceedings of the Tribunal shall be held in public. 6,~-{ 1) The decision on any matter of the majority of the Decision of Tribunal. Tribunal shall be the decision of the Tribunal. and the decision of the Tribunal shall be recorded in writing and signed by the chairperson of the Tribunal, who may correct in any decision, any clerical mistake or error arising from an accidental slip or omission. (2) A copy of the decision, signed as aforesaid, shall be sent by the chairperson of the Tribunal, as soon as may be practicable, to the appellant, the Registrar and any other interested party. (3) The Tribunal may, on the application of any person, award costs to any party to an appeal in such amount as the Tribunal shall assess at the hearing. General

7 — Save, as otherwise expressly provided by this Act, the

7. Save, as otherwise expressly provided by this Act, the provision as to procedure at any hearing before the Tribunal shall be such as procedure. the Tribunal mDY determine. 260 Act S Co-operative Societies 2011 Proof of

8 — The production in any proceedings in any Court of a

8. The production in any proceedings in any Court of a decisions of the Tribunal. document purporting to be certified by the secretary as a copy of a decision of the Tribunal shall, unless the contrary is proved, be sufficient evidence of the document and the facts stated therein. Passed in the House of Representatives this 14th day of December, 2010. ADRIAN C. A. HAYES Clerk to the House ofRepresentatives. Passed in the Senate this 22nd day of December, 2010. ADRIAN C. A. HAYES Clerk to the Senate. GRENADA j'RINTED BY 11-IE GOVERNMENT PRINTER, AT THE GOVERNMENT PRINTING OFFICE, ST.GEORGE'S I 514J20 I I

Co-operative Societies Act, 2011 (No. 8 of 2011)

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