South Australian Consolidated Acts

CO-OPERATIVES ACT 1997 - SECT 259

259—Disclosure statement

        (1)         This section applies to the issue of debentures of a co-operative where the issue is made—

            (a)         solely to members; or

            (b)         solely to members and employees of the co-operative.

        (2)         Before issuing to the person debentures to which this section applies, a co-operative must provide a person with a disclosure statement, approved by the Commission, and containing such information as is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, including—

            (a)         the purpose for which the money raised by the co-operative by the issue of debentures is to be used; and

            (b)         the rights and liabilities attaching to the debentures; and

            (c)         the financial position of the co-operative; and

            (d)         the interests of the directors of the co-operative in the issue of the debentures; and

            (e)         any compensation or consideration to be paid to officers or members of the co-operative in connection with the issue of debentures; and

            (f)         such other matters as the Commission directs.

        (3)         Sections 17 (except subsection (2)) and 29 apply to the approval of a disclosure statement under this section with any necessary modifications and in particular as if any reference in section 17 to the holding of a formation meeting were a reference to the issue of debentures.