Co-operation (Amendment) Act 1945 (NSW)

CO-OPERATION (AMENDMENT) ACT.

Act No. 5, 1945.

An Act to amend the Co-operation Act, 1923-

(Amendment) Act, 1945."

1941, and the Income Tax Management

Act, 1941, in certain respects; to validate certain mat ters ; and for purposes connected therewith. [Assented to, 14th March, 1945.]

BE it enacted by the King's Most Excellent Majesty, lative Council and Legislative Assembly of New South by and with the advice and consent of the Legis-	Wales in Parliament assembled, and by the authority of
the same, as follows :—

1 . (1) This Act may be cited as the "Go-operation

(2) The Co-operation, Communi ty Set t lement , and
Credi t Act, 1923, as amended by subsequent Acts and by

th is Act , m a y be cited as the Co-operation Act, 1923-1945.

2. (1) The Co-operation Act, 1923-1941, is amended—

(a) by inserting at the end of section eight the following new subsection:—

(2) A r u r a l society shall have and shall be deemed always to have h a d power to purchase or otherwise acquire and to sell to i ts members or other persons any goods or commodities.

(b) by omit t ing from p a r a g r a p h	(c) of section ten
the word	" t r a d i n g " ;

(c) by inser t ing next after p a r a g r a p h (d) of section

fifteen the following new p a r a g r a p h : —

(di) acquire land on which dwellings or buildings are being or have been erected and sell or let the same to i ts m e m b e r s ;

(d) by inserting next after section fifteen the fol­ lowing new section:—

15A. (1) W h e r e a community advancement

society is selling or le t t ing dwellings or buildings to i ts members i ts objects may include all or any of the objects prescr ibed for a small loans society in p a r a g r a p h s ( a ) , (b) and (ei) of subsection one of section twenty-nine of this A c t and m a y also include the guaran tee ing of loans made by any person to the members of the society for any of the purposes specified in those p a r a g r a p h s .

(2) A community advancement society may, if au thor ised by its rules, exercise all powers which are necessary for or incidental to the ca r ry ing out of any objects re fer red to in subsection one of this section.

The provis ions of sections thir ty-one and

31A of this Act shall apply, muta t i s mutand is ,

and with such modifications as may be p re ­ scribed to and in respect of the exercise by the society of such powers .

(e)

(e) by omit t ing from p a r a g r a p h (c) of subsection

one of section seventeen the words " communi ty a d v a n c e m e n t " and by inser t ing in lieu thereof

the word " o t h e r " ;

(f) (i) by omit t ing from section 17A the words

" n i n e t y per centum of"	wherever	occur­
r i n g ;

(ii) by omit t ing from p a r a g r a p h (c) of sub­

section one of section 17A all words following the word " l e n t " and by inser t ing in lieu thereof the words " d o e s not exceed one thousand two hundred and fifty

p o u n d s ; a n d "

(iii) by omit t ing from subsection four of

section 17A the words "five h u n d r e d " and by inser t ing in lieu thereof the words

" s e v e n hundred and fifty";

(g) (i) by inser t ing in subsection one of section

eighteen after the word " n o t " where firstly

occurr ing the words " e x c e p t wi th the

approva l of the Co-operative Building Advisory Committee const i tuted under this A c t " ;

(ii)   by omitting from the same subsection the words " o r is for a fixed period, of which three years at least are then current , whether with or wi thout any r ight or obligation of r epay ing by i n s t a l m e n t s " and by inser t ing in lieu thereof the words " o r

of any other building s o c i e t y " ;

(h) (i) by inser t ing a t the end of subsection one of

section thir ty-four the words " A n d a com­ muni ty advancement society which has been formed for objects which include the sale or le t t ing of dwellings or buildings to i ts members , and which, in the conduct of i ts operat ions, carr ies out or gives effect there to may become a component society of an association of building societies. And an association which is a foreign associa­ tion as defined in subsection two of section thir ty-s ix of this Act may, with the

approva l

approva l of the reg i s t r a r , become a com­ ponent society of any association formed

unde r this A c t . "

(ii)   by inserting in subsection three of the same

section after the words " r u r a l credit

soc ie t i e s" the words "bu i l d ing soc i e t i e s " ;

(i) by omit t ing section thirty-five;

(J) (i) by omit t ing subsection one of section

thir ty-s ix and by inser t ing in lieu thereof
the following subsection:—

(1) The objects of an association may include the acquisit ion by purchase or otherwise of shares in any other associa­ t ion or in any union or in any foreign association, or in any society or company which is incorpora ted in th is S ta te and which has under taken , in considerat ion of such acquisition, to r ender special services to the association, and m a y also include the joining with any such other association, union, foreign association, society or com­ p a n y as aforesaid in any opera t ions

au thor ised by i ts rules .

(ii)   by omitting from subsection two of the same

section the words " a t r ad ing society reg is te red under this A c t " and by insert- ing in lieu thereof the words " t h e associa­ t ion which joins with it or takes shares in i t " ;

(k) ( i) by inser t ing ia subsection seven of section	thir ty-nine af ter the word " r e g u l a t i o n s " where last ly occurr ing the words " a n d a re such as m a y reasonably be approved by h i m " ;
(ii)	by inserting next after subsection seven of
the same section the following new sub­ section :—

(7A) Notwi ths tanding anyth ing contained

in subsection seven of this section, where, upon a reference by the r e g i s t r a r to the

advisory

advisory council const i tuted unde r this

Act of an applicat ion for regis t ra t ion , t ha t council recommends t ha t the applicat ion should be refused on the g round tha t in the a rea in which the appl icant society proposes to opera te , the functions and services which i t is designed to discharge and pe r fo rm a re capable of being discharged and per formed by an exist ing society or societies, the

r e g i s t r a r may refuse the applicat ion.

( 1 ) by omit t ing from subsection one of section

forty-five	all	words	following	the	word
" s o c i e t y "	where	firstly	occur r ing ;

(m)	by omit t ing from p a r a g r a p h (ii) of subsection nine of section forty-six the words " v a l u e of his s h a r e " and by inser t ing in lieu thereof the
words " a m o u n t paid up on his s h a r e s " ;
(n)	by omitting from subsection fourteen of section forty-seven the word " e i g h t " and by inser t ing in lieu thereof the word " s i x " ;

(o) (i) by omit t ing from section 48A the word

" r u r a l " where firstly occurr ing;

(ii)   by omitting from the same section all words following the word " u n i n c o r p o r a t e " and by inser t ing in lieu thereof the words " w h i c h includes amongst i ts objects the render ing of services to such society or its members , or the operat ions of which a re calculated to promote the economic in teres ts

of such m e m b e r s " ;

(p) by omitting subsection one of section fifty-four and by inser t ing in lieu thereof the following subsect ion:—

(1) A t r ad ing society may repay to a member with his consent the whole or any p a r t of the amount paid up on any share held by h im a t any t ime when the money is not required for the purposes of the society.

(q) by omit t ing section fifty-six;

( r )

( r ) by inser t ing next af ter subsection four of section sixty-one the following new subsection:—

(4A) Any company or society formed or incorpora ted elsewhere than in the S ta t e and which has in i ts name or title the word " c o ­ o p e r a t i v e " or any word impor t ing a s imilar meaning, or not having any such word in i ts name or t i t le holds out in any m a n n e r t ha t i t s t r ade or business is co-operative, may, if i t desires to t r ade or ca r ry on business in New South Wales , apply to the r eg i s t r a r as p re ­ scribed for exemption from the provis ions of subsection one of this section.

If the r e g i s t r a r is satisfied tha t such company

or society is t r a d i n g or ca r ry ing on business for the purpose of p romot ing the economic in teres ts of its members in accordance with co-operative principles , he may g r a n t such exemption for such per iod and upon such condi­ tions as he thinks fit and shall notify the

Regis t ra r -Genera l accordingly.

(s)	by inserting at the end of section sixty-four the following words " a n d may sell or lease any such
real or personal p r o p e r t y " ;

( t ) (i) by inser t ing in subsection five of section sixty-six af ter the words "four-fif ths of t h e " the words " s u m obtained by adding t h e " ;

(ii)   by inserting at the end of the same sub­ section the following words " t o the amount

invested by the society in Government

securit ies " ;

(u)	by omitting from subsection two of section sixty-
seven the words " o r i n s u r a n c e " ;

(v)   by inserting next after section sixty-seven the following new sect ion:—

67A. (1) A society or association shall not c a r ry on the business of insurance unless the Governor, af ter a' r epor t and recommendat ion furnished to the Minister by a committee con­ st i tuted as hereinaf ter provided, so approves .

The

The committee shall consist of—

(a)	the Under Secretary to the Treasury, or a person nominated in wr i t ing from time to t ime by him, to act on his behalf ei ther general ly or for any par t i cu la r meet ing of the commit tee;
(b)	the Government A c t u a r y ; and
(c)	the Reg i s t r a r of Co-operative Societies.
Any nominat ion made by the Under Secre ta ry to the T r e a s u r y may be revoked by h im a t	any
t ime by wr i t ing under his hand.

(2) A society or association ca r ry ing on the business of insurance pu r suan t to the approva l of the Governor under this section is hereby author ised and empowered, bu t subject always to any conditions or s t ipulat ions imposed by the Governor in g r an t ing his approval , to under take and car ry on such business accord­ ing to the pract ice , usage, form and procedure which is, for the t ime being, followed by other persons engaged in the like business.

(3) An association car ry ing on the busi­ ness of insurance only pu r suan t to the provisions of subsection one of this section may notwith­ s tanding anyth ing contained in this Act be com­ posed of societies of different kinds.

(w) (i) by omit t ing from subsection (3A) of section

sixty-eight the word " r u r a l " ;

(ii)   by omitting from the same subsection the

figures " 1 8 9 9 " and by inser t ing in lieu

thereof the figures " 1 9 3 6 " ;

(x)   by inserting at the end of section seventy-two the following new subsection:—

(6) A document m a y be served on a society by leaving i t a t the regis tered office of the society with some person apparen t ly in the service of the society or by pos t enclosed in a p repa id regis tered le t te r addressed to the society at its reg is te red office.

The service by post shall be deemed to be effected a t the t ime a t which the le t ter would be delivered in the ord inary course of post .

(y)

(y) (i) by omit t ing from subsection two of section seventy-six the words "be fo re the th i r t i e th day of September in each yea r or before such la te r d a t e " and by inser t ing in lieu thereof the words " w i t h i n three months af ter the close of each of i ts financial yea r s

or wi thin such fur ther t i m e " ;

(ii)	by omit t ing p a r a g r a p h	(b) of the same sub­
sect ion;

(iii)   by omit t ing p a r a g r a p h (c) of the same sub­ section and by inser t ing in lieu thereof the

following p a r a g r a p h : —

(c) a statement of the assets and liabili­ ties of the society a t the close of i ts financial y e a r then last pa s t and of the accounts of the society for t ha t y e a r ;

(iv)  by inserting next after the same subsection the following new subsect ion:—

( 2 A ) A society shall, a t least once in every th ree years , within three months af ter the close of a financial yea r of the society or within such fu r the r t ime as the r e g i s t r a r m a y author ise , t r ansmi t to the r eg i s t r a r a full l ist of the members as a t the close of t ha t financial yea r with such pa r t i cu la r s in r ega rd there to as may be prescr ibed and in any yea r in which it does not furnish such a list it shall furnish a list in p re ­ scribed form of all the a l te ra t ions tha t have

da te in respect of which the full list o r a taken place in the membership since the
previous list of a l tera t ions , as the case may
be, was furnished.
(v)	by omitting subsection three of the same sect ion;

(z) by inserting in subsection four of section eighty- three af ter the word " r e g u l a t i o n s " the words " a n d is such as may reasonably be approved by h i m " ;

(aa )

(aa ) by inser t ing in p a r a g r a p h (c) of subsection nine

of section eighty-six af ter the word " l i a b i l i t y " the words " or of a building society or of a com­ muni ty advancement society or of a small loans

society or of an investment soc i e ty" ;

(bb) by inser t ing next af ter subsection two of section eighty-eight the following new subsection:—

(2A) A di rec tor of any society, no t being a r u r a l credit or a small loans society, shall not be pa id any remunera t ion for his services other t han such fees as may be approved a t a general meet ing of the society. The total amount pay­ able by way of fees to such di rectors in any year shall not exceed the amount fixed by the advisory council const i tuted under this Act.

(2) The Income Tax Management Act, 1941, as
amended by subsequent Acts is amended by inser t ing

in p a r a g r a p h (o) of section nineteen after the word

" i n c o m e " wherever occurr ing the words " ( o t h e r t han

income from the business of i n s u r a n c e ) "

3. (1) The Co-operation Act, 1923-1941, is fur ther

amended—

(a) (i) by inser t ing in subsection one of section ninety-two af ter the word " c o u r t " the words " o r subject to the supervis ion of the c o u r t " ;

(ii)   by omitting subsection two of the same sec­ tion and by inser t ing in lieu thereof the following subsection:—

(2) I n the case of a winding-up volun­ tar i ly, or by the court, or subject to the supervision of the court, the society may,

subject to the provisions of this P a r t of th is Act, be wound u p in the same m a n n e r and in the same circumstances in which a com­ pany formed and regis tered unde r the Companies Act, 1936, may be so wound up .

(iii)    by inser t ing in p a r a g r a p h (e) of subsection three of the same section af ter the word

' m i s t a k e " the words " o r f r a u d " ;

(iv)

(iv)   by inserting at the end of subsection five of the same section the following words " A n y vacancy occurr ing in the office of a liqui­ da to r so appoin ted shall be filled by a person appointed by the r e g i s t r a r for the p u r p o s e " ;

(v)   by inserting next after the same subsection the following new subsection:—

(5A) A winding-up upon a certificate of the r e g i s t r a r shall be deemed to commence a t the t ime of the certificate and the l iquidator shall give notice thereof by adver t i sement in the Gazette.

(vi)   by omitting subsections six, seven, eight and nine of the same section and by insert­ ing in lieu thereof the following sub­ section :—

(6) (a) I n the case of any winding-up of a society, the provis ions of P a r t X of the Companies Act, 1936, with respect to the winding-up of a company formed and reg is te red under t ha t Act, including the provis ions as to dissolution contained in Division 6 of t ha t P a r t , shall, subject to this P a r t of this Act, apply to the winding-up of the society.

(b) I n the applicat ion of the pro­ visions of P a r t X of the Companies Act, 1936 to the winding-up of a society—

(i)   a reference in any of those pro­ visions to a special resolut ion or

an ex t r ao rd ina ry resolut ion shall

be const rued as a reference to a special resolution wi th in the mean­ ing of this Ac t ;

(ii)   a reference in any of those pro­ visions other than the provisions of section two hundred and ninety- nine and section three hundred to the Regis t ra r -Genera l shall be con­

s t rued as a reference to the

r e g i s t r a r of co-operative societies

under this Ac t ; (iii)

(iii)   paragraph (d) of subsection one of section two hundred shall be deemed to be amended by inserting after the words "pas t member" the words "together with the amount of the contingent liability, if any, attached thereto, and together with any charges payable by him to the society in accordance with the ru les" ;

(iv)   a reference in sections two hundred and eight and two hundred and ten to a proprietary company shall be construed as a reference to an association or union;

(v)  a winding-up of a society upon the certificate of the registrar shall be deemed to be a voluntary winding- up, and, without prejudice to the generality of this or any other pro­ vision of this Par t of this Act, the provisions of sections two hundred and sixty-nine, two hundred and seventy and two hundred and seventy-one of the Companies Act, 1936, shall apply to and in respect of the winding-up of the society as if it were a members' voluntary winding-up within the meaning of that Act.

(b)	by inserting next after section ninety-two the following new section:—
92A. Where a society is being wound up volun­ tarily and a vacancy occurs in the office of liquidator which in the opinion of the registrar is unlikely to be filled in the manner provided by the Companies Act, 1936, the registrar may appoint a person to be liquidator.

(c) by omitting section ninety-three.

(2) Subsection one of this section shall be deemed to have commenced on the first day of January, one thou­ sand nine hundred and thirty-seven.

(3)

(3) Where a society which was registered under the Building and Co-operative Societies Act, 1901, but was not registered under the Co-operation, Community Settle­ ment, and Credit Act, 1923, wound up in pursuance of sub­ section seven of section forty-one of the last-mentioned Act, all or any of the property real or personal (including things in action) of the society which was vested in trus­ tees on its behalf, shall be deemed to have vested in the liquidator in his name as liquidator upon his appointment and he shall be deemed to have had full power and authority to bring or defend in his name as liquidator any action or other legal proceeding relating to such property or necessary to be brought or defended for the purposes of effectively winding-up the society or recovering its property.

(4) The special resolution of the No. 3 Argyle Starr Bowkett Ballot & Sale Cooperative Society, Limited, to wind up that society, which special resolution was registered on the twenty-seventh day of April, one thousand nine hundred and thirty-nine, shall be and be deemed always to have been a valid and sufficient authority for the winding-up of the society as a members' voluntary winding-up within the meaning of the Com­ panies Act, 1936, notwithstanding the non-observance of section two hundred and sixty-five of that Act in relation to the winding-up.

(5) The Co-operation Act, 1923-1941, is further

amended—

(a) by inserting next after subsection three of section one hundred and one the following new subsection:—

(3A) A director of a society who continues to

act as such after his office as a director has been

vacated shall be guilty of an offence.

(b) by inserting in subsection three of section one hundred and fourteen after the word " a n d " where firstly occurring the words " a majority of them."

JEANNERET'S