South Australian Consolidated Acts South Australian Consolidated Acts69—Carrying on business with too few members
(1) If a co-operative
continues to carry on business for more than 28 days after the number of
members is reduced below the minimum number of members allowed, every person
who is a director of the co-operative during the time when it so continues to
carry on business and who knows it is carrying on business with fewer than the
minimum number of members allowed is guilty of an offence and liable to a fine
not exceeding $2 000.
(2) Each person who is
guilty of an offence under subsection (1) is also liable to satisfy all
obligations of the co-operative incurred after the 28 days referred to in
subsection (1), and may be sued without any other member being joined in
the action.
(3) The minimum number
of members allowed is—
(a) for
an association or federation—2; or
(b) for
any other co-operative—5, or if a lesser number than 5 is prescribed by
regulation, the prescribed number.
(4) The Commission
may, by order, extend and further extend in a particular case the period of 28
days referred to in subsection (1).
(5) An application for
an extension must be made—
(a) in a
form approved by the Commission; and
(b)
before the period to be extended expires.