Co-Operative Societies Act · 2015 Revised Edition · Part V · Property and Funds of Registered Societies
Section 32A
Official textFrom Attorney General's Chambers, unchanged
A registered society shall credit to its Capital Reserve Account all capital gains arising from —
registered society
“registered society” means a co-operative society registered under this Act;
the sale of land, buildings or both, as fixed assets;
the re-valuation of land, buildings or both, as fixed assets, with the approval of the Registrar.
The capital gains referred to in subsection (1)(a) may be utilised by the registered society for all or any of the following purposes —
the issue of bonus shares;
the writing off of accumulated losses; and
the creation of a Bonus Share Redemption Fund.
Co-operative Societies 28
No registered society shall utilise the capital gains referred to in subsection (l)(a) for the purpose of issuing bonus shares unless and until all its accumulated and current losses, if any, have been completely written off.
bonus shares
“bonus shares” means the additional value of the shares as a result of the re-assessment of the society’s property;
The capital gains referred to in subsection (1)(b) may be utilised by the registered society for the issue to its members of bonus shares which shall not be withdrawn but which may, with the approval of the committee members or members of the directorate, be transferred to another member of that society or, in the case of a member who dies after the issue of bonus shares, be paid out of the Bonus Share Redemption Fund of that registered society.
member
“member” includes a person or registered society joining in the application for the registration of a society, and a person or registered society admitted to membership after registration in accordance with the by-laws;
The bonus shares redeemed by a registered society may be re-issued as bonus shares to its member in accordance with its by-laws.
by-laws
“by-laws” means the registered by-laws made by a society in the exercise of any power conferred by this Act, and includes a registered amendment of the by-laws;
A register of bonus shares shall be maintained by the registered society.
This section does not apply to a registered society that is required by the provisions of any other written law to deal with its capital gains in the manner provided in that law.
Disposal of profits. [S 61/2012]
Terms defined in s 2
bonus
Defined · s 2“bonus” means a share of the profits of a registered society divided among its members in proportion to the share business done with the society by them from which profits of the society were derived;
bonus shares
Defined · s 2“bonus shares” means the additional value of the shares as a result of the re-assessment of the society’s property;
by-laws
Defined · s 2“by-laws” means the registered by-laws made by a society in the exercise of any power conferred by this Act, and includes a registered amendment of the by-laws;
committee members
Defined · s 2“committee members” means the governing body of a registered society, to whom the management of its affairs is entrusted;
member
Defined · s 2“member” includes a person or registered society joining in the application for the registration of a society, and a person or registered society admitted to membership after registration in accordance with the by-laws;
registered society
Defined · s 2“registered society” means a co-operative society registered under this Act;
Registrar
Defined · s 2“Registrar” means the Registrar of Co-operative Societies appointed under section 3 and includes any person when exercising such powers of the Registrar as may be conferred upon him under that section;
Part VI
Audit, Inspection and Inquiry
Part VII
Part VIII
Surcharge and Attachment
Part IX
Disputes
Part X
Rules
Part XI