South Australian Consolidated Acts South Australian Consolidated Acts139—Entitlements of former shareholders on mergers etc
(1) This section
applies when a person's shares in a co-operative ("the original co-operative )
are forfeited under this Part and within 5 years after that forfeiture—
(a) the
original co-operative becomes a subsidiary of another co-operative
("the new co-operative"); or
(b)
another co-operative ("the new co-operative") is created as a result of a
merger under Division 1 of Part 12 involving the original co-operative; or
(c) the
engagements of the original co-operative are transferred to
another co-operative ("the new co-operative") under Division 1 of Part 12.
(2) A person referred
to in subsection (1) is, for the purposes of the operation of
section 138 (and the further operation of this section) to be regarded as
having held shares in the new co-operative and as having had those shares in
the new co-operative forfeited under this Part when the person's shares in the
original co-operative were forfeited.
(3) The extent of the
forfeited shareholding in the new co-operative is determined as follows:
(a) if
the entitlement of active members of the original co-operative in the
circumstances concerned is solely an entitlement to be allotted shares in
the new co-operative, the forfeited shareholding in the new co-operative is
the shareholding to which the person would have been entitled had the person's
shares in the original co-operative not been forfeited;
(b) in
any other case, the forfeited shareholding in the new co-operative is the
shareholding that is the same in all respects as the forfeited shareholding in
the original co-operative.
(4) The determination
under subsection (3)(a) of the person's shareholding in
the new co-operative must be made—
(a)
solely on the basis of the person's shareholding in the original co-operative
when the shares were forfeited or (in a further operation of this section in
respect of the person) when the person was first to be regarded as having a
forfeited shareholding in the original co-operative; and
(b)
without regard to any additional shareholding in the original co-operative to
which the person would have become entitled had the shares not been forfeited
(whether as a result of any bonus share issue or otherwise).