South Australian Consolidated Acts

CO-OPERATIVES ACT 1997 - SECT 258

258—Application of Corporations Act to issues of debentures

        (1)         Subject to subsection (2), the debentures of a co-operative are declared to be applied Corporations legislation matters for the purposes of Part 3 of the Corporations (Ancillary Provisions) Act 2001 in relation to the provisions of Part 1.2A, Chapter 2L, Chapter 6D and Part 7.10 of the Corporations Act, subject to the following modifications:

            (a)         the provisions apply as if a co-operative were a company; and

            (b)         a reference in those provisions to a corporation includes a reference to a co-operative; and

            (c)         a reference in those provisions to ASIC is to be read as a reference to the Commission.

        (2)         The provisions of the Corporations Act made applicable to the debentures of a co-operative by this section do not apply to the following:

            (a)         a loan to which section 262 applies;

            (b)         an issue of debentures of a co-operative that is made—

                  (i)         solely to members; or

                  (ii)         solely to members and employees of the co-operative; or

                  (iii)         to a person who on becoming an inactive member of the co-operative has had his or her share capital converted to debt.

        (3)         Expressions used in this section which are not defined in this Act have the same meaning as in the Corporations Act.

        (4)         The Commission may exempt a co-operative from any of the requirements of the Corporations Act applied by this section or by section 10.

        (5)         The Commission may grant an exemption unconditionally or subject to conditions.