Co-Operative Societies (Amendment) Act, 2013 (No. 12)

Link to law: http://laws.gov.ag/acts/2013/a2013-6.pdf

THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013 no12.indd
The Co-operative Societies (Amendment) Act, 2013 No. 12 of 2013

“(2) A co-operative society shall not redeem qualifying and equity shares, provided that
the value of the qualifying and equity shares owned by the members shall not fall below the
equivalent of ten percent of the asset worth of the cooperative society.

(3) The Supervisor shall grant such period of time, not exceeding fi ve years from the
commencement of this Act, as the Supervisor considers reasonable to enable an existing co-
operative Society to make good any defi ciency in the adequacy of its capital base.”

12. Amendment of section 121 – Loan by credit union

The principal Act is amended in section 121 —

(a) by repealing sub-sections (5) and (6) and substituting the following —

(5) A loan shall not be made to a director, committee member or employee
referred to in sub-section (3) if, when combined with all other outstanding
loans to persons referred to in sub-section (3), including the persons’ busi-
ness interest it exceeds twenty-fi ve percent of the aggregate of the equity
shares and the institutional capital of the credit union.

(6) Unless with the prior approval of the Supervisor, a loan shall not be made by
a credit union to a member or a group of related members if the loan would
cause the aggregate amount of loans to the member, the member’s business
interest and the group of related members to exceed ten percent of the share
capital”.

13. Amendment of section 124 – Receipt of deposits from minors

The principal Act is amended in section 124 by deleting the word “minority” in sub-section (4)
and substituting the words “a minor”.

Passed the House of Representatives Passed the Senate on the 11th September,
on the 28th August, 2013. 2013.

D. Gisele Isaac-Arrindell, Hazlyn M. Francis,
Speaker. President.

Romona Small, Romona Small,
Clerk to the House of Representatives. Clerk to the Senate.

8 ANTIGUA AND BARBUDA

THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013

No. 12 of 2013

[Published in the Offi cial Gazette Vol. XXXIII No. 65
dated 14th November, 2013]

________
Printed at the Government Printing Offi ce, Antigua and Barbuda,

by Ralph George, Government Printer
— By Authority, 2013.

600—11.13 [ Price $ 3.30 ]

The Co-operative Societies (Amendment) Act, 2013 No. 12 of 20132 No. 12 of 2013 The Co-operative Societies (Amendment) Act, 2013

society as a direct or indirect result of a contravention of this section.”

9. Repeal and replacement of Section 91 – Notice of change of Directors

Section 91 of the principal Act is repealed and replaced by the following—

“(1) Within twenty one days of the receipt of the list of nominees of the proposed directors
or committee members in accordance with section 72(1) (d), the Supervisor shall conduct an
investigation on the proposed nominees to determine whether each nominee is qualifi ed in
accordance with the criteria set out in section 53(4) to hold the offi ce of a director or member
of a committee.

(2) At the completion of the investigation, the Supervisor shall notify the cooperative so-
ciety of the nominees who are qualifi ed and those who are disqualifi ed, and in the case of a
disqualifi ed nominee, give reasons for the disqualifi cation.

(3) Where after an annual general meeting for the election of directors and committee
members, a vacancy occurs in the membership of the directors or committee, the cooperative
society shall within 14 days of the occurrence of the vacancy, notify the Supervisor of the nom-
inees appointed to fi ll the vacancy for the purpose of conducting an investigation to determine
whether such nominee is qualifi ed on the basis of the criteria set out in section 53(4) or not.

(4) The Supervisor shall, within seven (7) days of the receipt of the nominations, inform
the cooperative society of the nominees who are disqualifi ed in terms of section 53(4) and
give reasons for the disqualifi cation.

(5) The Supervisor shall, on receipt of the successful nomination to fi ll the vacancy, regis-
ter the successful nominee as director or committee member.

(6) Notwithstanding subsection (1), where a cooperative society sends an annual return in
accordance with section 147 within thirty (30) days after a change is made in its directors, the
cooperative society is not required to send the notice required by this section.

10. Amendment of section 96 – Shares

The principal Act is amended in section 96 by repealing sub-section (3) and substituting the follow-
ing —

“(3) A share in a co-operative society is personal property and a shareholder is entitled to
a statement on demand showing the number of shares that he owns”.

11. Amendment of section 97 – Share capital

The principal Act is amended in section 97 by repealing subsections (2) and (3) and substituting the
following –

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The Co-operative Societies (Amendment) Act, 2013 No. 12 of 2013

5. Amendment of section 59 – Credit Committee

The principal Act is amended in section 59 by repealing the reference to paragraphs “(a) to (d)” in
subsection (7) and substituting therefor paragraphs “(a) to (e)”.

6. Amendment of section 65 – Supervisory and compliance committee

The principal Act is amended in section 65 by repealing the reference to paragraphs “(a) to (d)” in
subsection (7) and substituting therefor paragraphs “(a) to (e).

7. Amendment of section 72 -Election of Directors

The principal Act is amended in section 72 by —

(a) inserting after paragraph (c) of sub-section (1) the following paragraphs —

“(d) the list of nominees of the proposed directors or proposed members
of a committee shall be submitted to the Supervisor for approval
within seven days after the close of the nomination;

(e) a person nominated as a director or a member of a committee of the
cooperative society, shall be a fi t and proper person in accordance with
the criteria set out under section 53(4)”

(b) re-number paragraphs “(d), (e), (f) and (g)” of sub-section (1) as paragraphs “(f),
(g), (h) and (i)”.

8. Repeal and Substitution of section 77 - Duty of care of Directors and Offi cers

Section 77 of the principal Act is repealed and replaced by the following-

“77. Duty of care of Directors, Offi cers etc.

(1) Every director, offi cer, member of a committee or management employee of a coop-
erative society shall —

(a) act honestly and in good faith in the performance of his functions and duties to the
cooperative society; and

(b) exercise due care, diligence and skill that a reasonable prudent person would
exercise in comparative circumstances.

(2) Every director, offi cer, member of a committee or management employee of a coop-
erative society shall be liable to make good any loss or damage suffered by the cooperative

6 No. 12 of 2013 The Co-operative Societies (Amendment) Act, 2013

THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013

ARRANGEMENT

Sections

1. Short title.

2. Interpretation

3. Amendment of section 12- Application for registration

4. Amendment of section 53 – Board of Directors and Committees

5. Amendment of 59 – Credit Committee

6. Amendment of section 65 – Supervisory and Compliance Committee

7. Amendment of section 72 – Election of Directors

8. Repeal and Substitution of section 77 – Duty care of Directors and Offi cers

9. Repeal and replacement of section 91 – Notice of change of Directors

10. Amendment of section 96 – Shares

11. Amendment of section 97 – Share capital

12. Amendment of section 121 – Loan by credit union

13. Amendment of section 124 – Receipt of deposits from minors

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The Co-operative Societies (Amendment) Act, 2013 No. 12 of 2013

[L.S.]

I Assent,

Louise Lake-Tack,
Governor-General.

28th October, 2013.

ANTIGUA AND BARBUDA

THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013

No. 12 of 2013

AN ACT to amend the Co-operative Societies Act 2010, No. 9 of 2010.

ENACTED by the Parliament of Antigua and Barbuda as follows:

1. Short title

This Act may be cited as the Co-operative Societies (Amendment) Act, 2013.

2. Interpretation

In this Act the principal Act means the Co-operative Societies Act 2010, No.9 of 2010.

3. Amendment of section 12- Application for registration

Section 12 of the principal Act is amended by the repeal of subsection (3) and the substitution of
the following–

“(3) An application under subsection (1) shall be accompanied by the following-

(a) Three copies of the proposed laws of the cooperative society;

(b) The names of persons appointed and consented to act as provisional directors and

4 No. 12 of 2013 The Co-operative Societies (Amendment) Act, 2013

committee members of the cooperative society;

(c) The names of the offi cers appointed to manage the affairs of the cooperative
society;

(d) The prescribed application fee; and

(e) Such other information in respect of the cooperative society as the supervisor may
require.”

4. Amendment of section 53 - Board of Directors and Committees

The principal Act is amended in section 53 —

(a) by inserting after sub-section (5) the following subsections —

“(6) A co-operative society shall, upon receipt of an application for registration
of a cooperative society, consider the application along with accompanying
information required under section 12 (3) and satisfy himself that every
proposed director, committee member or offi cer of the cooperative society
is, in accordance with subsection (4), a fi t and proper person to hold the
offi ce to which he has been nominated.

(7) Where there is a proposed appointment of a director or a member of a
Committee, or an employee who constitutes the management of a co-opera-
tive society, the co-operative society shall submit to the Supervisor a notice
of such change as prescribed in Regulations not less than thirty (30) days
prior to the proposed date of the appointment.

(8) Upon receipt of the notice of change, the Supervisor shall conduct an
assessment to determine whether the proposed appointee satisfi es the fi t and
proper person requirements in accordance with the criteria under subsec-
tion (4).

(9) The Supervisor shall within fi fteen days of the receipt of the notice of change—

(a) approve the proposed appointment and notify the co-operative
society; or

(b) where the proposed change is not approved, inform the co-operative
society that the proposed appointment is not approved and give rea-
sons for not approving.”

(b) by re-numbering subsection (6) as sub-section (10).

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