No. 2 of 1997. The Co-operative Societies Act 1997. 1 ANTIGUA
AND

BARBUDA

Joseph Myers,
Governor-General's Deputy.

11th March, 1997.

ANTIGUA AND BARBUDA

1997, No. 2

An Act to make new provision with respect to the registration,
supervision and management of certain societies, the mem-
bers of which have a common bond of philosophy and socio-
economic objectives and for related purposes.

ENACTED by the Parliament of Antigua and Barbuda as
follows:

PART I

PRELIMINARY

1. This Act may be cited as the Co-operative Societies Act, short title.
1997.

2. (1) In this Act, unless the context requires, Interpretation.

"articles" means the articles of association of a society that
are submitted to the Registrar with an application for the
registration of the society;

"board" means the Board of Directors or other directing body
(by whatever name d e d ) to whom the management of the
affairs of a society is entrusted;

"bonus" means a share of the profits of a registered society
divided among its members in proportion to the volume of

ANTIGUA 2 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

business done with the society by them from which the profits
of the society were derived,

"by-laws" means the registered by-laws made by a society
pursuant to this Act and includes aregistered amendment of
such by-laws;

"co-operative" or "co-operative society" means a body
corporate registered under this Act which consists of a group
of people, small or large, with a commitment to joint action
on the basis of democracy and self-help in order to secure a
service or economic arrangement that is both socially desir-
able and beneficial to all taking part;

"Court" means the High Court of Justice;

"Credit Union" means aregisteredsociety whoseobjects and
services include the promotion of thrift and the creation of a
source of credit for its members for provident and productive
purposes;

"Director", means a member of the board who is elected in
accordance with section 69;

"dividend" means a share of the profits of registered society
divided among its members in proportion to the share capital
held by them;

"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 registra-
tion in accordance with this Act and the by-laws;

"Minister" means the Minister to whom the responsibility of
Co-operative Societies has been assigned,

"minor" means an individual under the age of fourteen
years;

"national league" or National Council" means the apex body
for registered societies established for the purposes of section
214;

"officer" includes a director, secretary, treasurer, or other
person empowered under this Act or the regulations er
by-laws made under this Act to give directions in regard
to the business of a registered society;

No. 2 of 1997. The Co-operative Societies Act 1997. 3 ANTIGUA
AND

BARBUDA

"registered society" or "society" means a co-operative soci-
ety registered under this Act;

(2) This Act applies to societies which are registeredunder this
Act ordeemed, by virtueof section 241, to be registered under this
Act.

3. For the purposes of this Act, a society conforms to CO- CO-operative
operative principles if - principles.

(a) no member or delegate, other than a secondary or
tertiary society, has more than one vote;

(b) no member or delegate is entitled to vote by proxy;

(c) its business is carried on primarily for the benefit of
its members;

(d) its membership is voluntary and available without
any artificial restriction or any unlawful basis of
discrimination, to any person who cause its services
and is willing toaccept the responsibility ofmember-
ship;

(e) the rate of dividends on share capital that it pays does
not exceed the rate prescribed in the regulations;

If) any surplus or savings arising out of its operation
is -

(i) used to develop its business;

(ii) used to provide or improve common services
to members:

(iii) used for the payment of dividends on share
capital;

(iv) distributed among members in proportion to
their patronage with the society;

(v) used to educate its members, officers, employ-
ees or the general public in the principles and

ANTIGUA 4 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

techniques of economic and democratic co-
operation;

(vi) distributed for non-profit, charitable,
benevolent or cultural purposes.

(g) cooperation with other societies is pursued;

(h) it provides for continuing education.

Conformity to 4. A society registered under this Act shall, conform to the
co-operative prin- principles set out in section 3.
ciples.

PART n

ADMINISTRATION

Registrar of 5. (1) There shall be aRegistrar of co-operative societies who
cooperative
societies.

shall have such professional, administrative and other staff as are
necessary to assist him in the execution of his duties and
exercising his powers under this Act.

(2) The Registrar shall perform the following functions:

(a) the registration of all societies;

(6) the supervision of all societies;

(c) liaise with all societies;

(d) stimulate community awareness;

(e) the initiation and encouragement of organisedactivi-
ties for the development of societies.

(3) The Registrar may, by writing, delegate any of his func-
tions specified in subsection (2) to a suitable qualified member of
his staff or to any other person or body of persons convicted with
co-operations and any function so delegated shall be perf~rmed
in such manner as the Registrar directs.

(4) Nothing in subsection (2) shall authorise the Regislra to
delegate the power of delegation that is conferred on him by that
subsection.

No. 2 of 1997. The Co-operative Societies Act 1997. 5 ANTIGUA
AND

BARBUDA

6. (1) The Registrar may issue a person with a cert

ifi

cate
stating that -

(a) adocument required to be sent to the Registrar has or
has not been received by him; Certificate of

Registrar.

(b) a name, whether that of a society or not, was or was
not on the register;

(c) a name, whether that of a society or not, was or was
not on the register on a stated date.

(2) The Registrar or any officer authorised by him in writing
shall sign any certificate issued under this section.

(3) The signature required pursuant to subsection (2) may be
printed or mechanically reproduced on the certificate.

(4) A certificate or certification mentioned in subsection (2) is
admissible in evidence as conclusive proof of the facts stated in
the certificate or certification without proof to the office or
signature of the person purporting to have signed the certificate
or certification.

7. (1) The Registrar may refuse to receive, file or register any PO,,, to refuse
document that in his opinion - documents.

(a) contains any matter conmy to law;

(b) has not, by reason of any omission or error in
description, been properly completed;

(c) does not comply with the requirements of this Act;

(d) contains any error, alteration or erasure;

(e) is not legible; or

0 is not durable.

(2) TheRegistrar may request in respect of adocumentrefused
pursuant to subsection (1) -

(a) that it be amended or completed and resubmitted, or

ANTIGUA
AND

BARBUDA

Verification of
documents.

Application for
registration.

Content of by-
laws.

6 The Co-operative Societies Act 1997. No. 2 of 1997.

(b) that a new document be submitted in its place.

8. The Registrar may require that a document or information
contained in a document required by this Act or the regulations
to be sent to him be verified by affidavit or otherwise.

9. (1) No society may commence or continue business unless
it is registered in accordance with this Act.

(2) Subject to subsection (3) an application for registration
under this Actmust be submitted to theRegistrar in the prescribed
form and in such manner as he determines.

(3) An application for registration under this Act must be
signed -

(a) in the case of a society of which no member is a
registered society, by at least one-third of the mem-
bers specified in paragraph (c) of section 12(1) for
such a society;

(b) in the case of a society where all members of the
society are not registered societies, by at least three
quarters of the total membership of the society; and

(c) in the case of a society where all the members are
registered societies, on behalf of at least two such
societies.

(4) An application must be accompanied by -

(a) three copies of the proposed by-laws of the
society;

(b) the prescribed application fee; and

(c) such other information in respect of the society as
the Registrar requires.

10. (1) A registered society shall include in its by-laws
provisions -

(a) respecting conditions of membership, including -

No. 2 of 1997. The Co-operative Societies Act 1997. 7 ANTIGUA
AND

BARBUDA

(i) the rights of joint members, if any,

(ii) the qualification for membership and the with-
drawal of members and transfer of membership;

(iii) the amount of the merribership fee and the
annual fee, if any, to be paid by members,

(iv) the conditions on which membership ceases or
may be terminated, the disposition that may be
made on cessation or termination of a member's
interest and the determination of the value of the
member's interest, and

(v) the minimum value of shares that may be held
by each member;

(b) respecting, subject to this Act, voting rights and the
rights of making, amending andrepealing by-laws, the
right of a member to vote by ballot and the manner,
f om and effect of votes at meetings;

(c) respecting directors, officers and members of the
committees of directors,

(i) their qualifications, terms of office and removal,

(ii) the filling of vacancies, and

(iii) their powers and duties;

(d) respecting the address of the registered society;

(e) respecling the distribution of the property of the society
on dissolution thereof;

(f) respecting the borrowing powers of the society and the
procedure for exercising those powers; and

(g) respecting any matters, in addition to those set out in
paragraphs (a) to (f) that the members consider neces-
sary or desirable.

ANTIGUA 8 The Co-operarive Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(2) Subject to subsection (3), where the by-laws require agreater
number of votes of directors or members than that required by this
Act to effect any action, the by-laws shall prevail.

(3) The by-laws may not require a greater number of votes of
members to remove adirector than thenumber required for a special
resolution.

Effect of by-laws. 11, The by-laws of a society when registered bind the society
and its members to the same extent as if they -

(a) had been signed and sealed by the society and by every
member; and

(b) contained covenants on the part of each member and
the legal representative of each member to observe the
by-laws.

Conditions for 12. (1) No society may be registered, or having been regis-
registration. tered, continue to be registered under this Act -

(a) unless its membership consists -

(i) in the case of financial co-operatives, of not less
than fifty members, and

(ii) in the case of any other co-operative of not less
than ten members;

(b) unless it is considered to be economically viable by the
Registrar and has provision for equity capital expan-
sion and continuous business growth;

(c) urdess subject to subsection (2), its membership con-
sists solely of members of a school, club, or cultural
organisation who are all under the age of fourteen
years;

(d) unless there is conformity among its membership,
none of whom is another society, with all the co-
operative principles as set out in section 4;

(e) unless the word "co-operative" or "Credit Union"
forms part of the name of each such society, and a

No. 2 of 1997. The Co-operative Societies Act 1997. 9 ANTIGUA
AND

BARBUDA

society whosemembership falls within the description
contained in paragraph (c) the words "junior co-
operative" forms part of the name of such society;

Cf) unless the word "limited" is the last word of the name
of a society to be registered with limitad liability;

(g) if the name of the society is identical with that of
another registered society or which so nearly re-
sembles that name as to be likely to mislead the
members of the public as to its identity?

(h) unless it has and maintains an address to which all
notices and communications may be sent;

(i) unless its by-laws are in conformity with this Act;

0) unless, within a reasonable time after the issue of the
~ r ~ c a t e o f registration, the society paints or affixes
its registered name in letters that are easily legible in
a conspicuous position on the outside of the place
where the business of the society is carried on, and in
the case of a society registered under section 15, its
registered name bears the words "Probationary So-
ciety".

(2) Notwithstanding anything contained in paragraph (c) of
subsection (I), the Registrar may register as a junior co-operative
a society the substantial majority of whose members are under the
age of fourteen years.

(3) In the determination of the viability of a society the Registrar
may have regard to the following;

(a) the demand for the proposed services,

(b) the capital base of the society, and

(c) the membership size and potend of the society.

13. When the Registrar is satisfied that the application is made Registration of
in accordance with this Act, he shall, within three months of the societies.
receipt of the application, register the society and its by-laws and
issue that society with a certificate of registration in the
presciibed form.

ANTIGUA
AND

BARBUDA

Effect of
certificate of
registration.

Probationary
societies.

10 Tik Co-operative Societies Act 1997. No. 2 of 1997.

(2) The name under which a society is registered under this
Act -

(a) shall be published in the Gazette; and

(b) shall be noted in the register to be known as the
"Register of Societies" and which shall be kept at the
office of the Registrar.

(3) Where the Registrar refuses to register a society he sMl give
the applicant reasons in writing for the refusal.

(4) The names of all societies that are contained under this Act
shall be entered in the Register of Societies.

14, (1) Except for a society that is deemed to be registered under
this Act, a society comes into existence on the date shown in its
cediate of registration.

(2) A certificate of registration issuedby the Registrar to asociety
is conclusive proof that the society named in the certificate is
registered under this Act and has complied with all the require-
ments of registration under this Act.

15. (1) If the Registrar is satisfied that a society which has
submittedan application forregistration shouldnotberegistered as
a registered society, he may register such society for a period not
exceeding twelve months.

(2) A society registered under subsection (I) shall be termed a
"probationary society"and shal! be subject to such conditions as the
Registrar may impose.

(3) If the Registrar is satisfied that a probationary society has
made sufficient progress in complying with the conditions imposed
on the society, he may register the probationary society as a
registered society.

(4) If the Registrar is not satisfied that a probationary society
has made sufficient progress in complying with the conditions
imposed on that society, he may extend the probationary period
for a further period not exceeding twelve months, or cancel the
registration.

No. 2 of 1997. The Co-operative Societies Act 1997. 11 ANTIGUA
AND

BARBUDA

(5) If at the end of the second year the Registrar is satisfied that
a probationary society has made sufficient progress in complying
with the conditions imposed on that society, he may register that
society as a registered society; otherwise he shall cancel the
registration.

16. (1) The registration of a society renders it a body corporate, Capacity and
and subject to this Act and its by-laws it has the capacity, rights, powers.
powers and privileges of an individual.

(2) A society shall not carry on any busiiess or exercise any
power that is restricted by its by-laws or any written law from
carrying on or exercising nor shall a society exercise any of its
powers in a manner contrary to its by-laws.

(3) No person is affected by, or presumed to have notice or
knowledge of, the contents of a document concerning a society by
reason only that the document has been filed with the Registrar or
is available for inspection at any office of the society.

(4) Subject to the approval of the Registrar and unless the
societies have agreed in writing thereto, no person shall be a
member of more than one registered society whose primary object
is to grant loans to its members.

17, (1) A society must at all times establish and maintain a Registeredoffice.
registered office and the address of such office must be specified in
the by-laws.

(2) The directors of a society may change the address of the
registered office.

(3) The Registrar must be informed of any such change of
address within one month of such change.

18. (1) Every society shall have its certificate of registration Maintenance of
permanently displayed at its registered office. mandatory records.

(2) With przjudice to subsection (I), there shall be made
available at all reasonable times at the registered office of the
society -

(a) a copy of this Act and any regulations made there-
under;

ANTIGUA 12 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) a capy of tbe by-laws of the society;

(c) the register of members;

(d) all minutes of meetings of members and resolutions of
members;

(e) copies of all notices of directors and notices of change
of directors;

If) a register of its directors setting out the names, ad-
mses and occupations of all pe~sons who are or have
been directors of the society with the dates on which
each person becarne or ceased to be a director;

(8) a copy of every certificate issued to it by the Registrar;
and

(h) a copy of every order of the Registrar relating to the
sockty;

(i) all minutes of meetings of directors and committees.

Access to reccxh. 19. (I) The Registrar may, during the normal business hours of
the saciety, examine my of the words specified in subsection 18
(2).

(2) Members of a society, their agents and their legal represen-
tatives may, during the normal business hours of the society,
examine any of the records specified in section 18 (2) (a) to (h).

(3) A society shall give to any person specified in subsections (1)
and (2) access to any record specified in section 18 (2), during
n d office hours of the society.

Suspension and 20. (1) Subject to this Act, the Registrar may by order in writing
-cellation of suspend the registration of a society if he is satisfied that -
regislration.

(a) the society is in breach of any condition of registration;

(b) the society is in breach of any requirement of section
4 or 14 of this Act;

No. 2 of 1997. The Co-operative Societies Act 1997. 13 ANTIGUA
AND

BARBUDA

(c) the society or any officer thereof has failed or refused
to conply with any obligation imposed by, or any
requirement of, this Act, the regulations or by-laws;

(d) hed~snotreceiveany~~notimorotherdocument
or fee required by this Act or the regulations to be sent
to him.

(2) Tbe Registrar may by order in writing cancel the registration
of any registered society if -

(a) at any time it is proved that thenumber of members has
been reduced to less than the number required for the
registration of the society;

(b) it is proved that the registration has been obtained by
fraud or mistake;

but a cancellation under paragraph (a) shall not apply to a society
whichincludesamong itsmembersoneormoreregisteredsccieties.

(3) Anorder under subsection (1) or (2) shall take effect from ?he
date of the order.

(4) No suspension or cancelkition m y be made by the Registrar
until he has given the society achance to be heard; and a suspension
may not exceed twelve months.

(5) Where after a m o d of suspension a society has not rectif~ed
the circalmstanms leading to its suspenslo~, the Registrar my
cancel the registration of that socieXy.

(6) Where the registration of a society is cancelled by order under
this section or any other section the society shall, except for the
purpose of winding up, cease to exist as a body corporate from ?he
date on which the order takes effect.

21. ( I ) The B w d r a y by resshtion - seal.

@I) change the corporate seal adopted pursuant to para-
graph (4.

ANTIGUA 14 The Co-operative Societies Act 1997. - No. 2 of 1997.
AND

BARBUDA

(2) An instnunent of agreement executed on behalf of a society
by a director, an officer or an agent of the society is not invalid
merely because a caprate seal is not affixed to it.

&-registration 22. (1) Except as provided in this section, a person who enters
conkads. into a written contract in the name of or on behalf of a society before

it comes into existence is personally bound by the contract and is
entitled to the benefits of the contract.

(2) Within areasonable time after asociety comes intoexistence,
it may, by any action or conduct signifying its intention to be bound
thereby, adapt a written contract made in its name or on its behalf,
before it came into existence.

(3) Where a society adopts a contract under subsection (2)

(a) the society isbundby the contract andis entitled to the
benefits themf as if the society had been in existence
atthe&kofthecon@actandMknapartytoit;ad

(b) aperson who pupated to act in thename of the society
or on its behalf ceases except as provided in ~ ~ b m t i o ~ i
(4) to be bound by or entitled to the benefits of the
contract.

(4) Except as providedin subsection (3, whether ornot awritten
contract made before the coming into existence of a society is
adopted by the society, a party to the contract may apply to a court
for an order futing the obligations under the contract as joint orjoint
and several, or apportioning liabiity between or among the society
and a person who purported to act in the name of the society or on
its hem, and the court may upon the application make any order
it thinks fit.

(5) If expressly so provided in the written contact, a person who
purported to act for or on behalf of the society before it came into
existence is not in any event bound by the contract or entitled to the
benefits of the contract.

No. 2 of 1997. The Co-operative Societies Act 1997. 15 ANTIGUA
AND

BARBUDA

MEMBERSHIP AND MEETINGS

23. (1) An application for membership of a society must be Application and
submitted to the Board in such form as the Board approves. qualification for

membership.

(2) In order to qualify for the membership of a society, a person,
otbncr than a registered wiety,

(a) must be a citizen or resident of Antigua and Barbuda,
or

(b) must not be an undischarged bankrupt;

(c) must not be of unsound mind; and

(d) must be fourken years of age or over.

(3) The Board shall cause each applicant for membership to be
notified in writing that his application has k e n approved or
disapproved.

(4) No society may without pnnission of the Registrar register
as a member a person who is a member of another society whose
primary object is to gant loans to its members, neither may a
registered societybcmme amember of another registered society of
h e . m e type.

24. Subject to the by-laws, where individuals h a v ~ separaE and Joinr accounts.
hdepndent membership izl a society, joint ;~cccurd's m y be heid,

25. (1) No person may exercise the righid of memt?enbip d a Mem5~rshpEeq
society unless and until he has paid the pt.esaiM memkrsh~p fee
and has satisfied any other requirement w h ~ h m y k prescribed '"g'kxeb.
by the by-laws.

(2) Azgiseered society s h d keparegisterdme~nbers inwhich
s h d be recorded -

(a) the m e s and addr~sses of members; and

(b) 6he date on which each member k c m e a member and
the date, if any, on which he ceased to be a member.

ANTIGUA
AND

BARBUDA

Liability of
past and present
members.

Withdrawal of
membership.

Termination of
memberstup by
Board.

16 The Co-operative Societies Act 1997. No. 2 of 1997.

26. (1) Subject to thi8 Act, the liability of a current member of
a society is limited to the unpaid amount of his subscription for
shares.

(2) The liabiity of a past member or the estate of a deceased
member for debts of a society as they existed on the date on which
such member ceased to tre a member or died shall continue for a
period of two years after the cessation of membership or death.

27. (1) A member of a society may at any time withdraw from
membership of such a society in such amanner as may be prescribed
by the by-laws or regulations.

(2) Withdrawal of membership from a society may be by written
notice addressed ta the Board.

(3) Withdrawal of membership of a society does not affect any
existing liabiity of the member to the society.

28. (1) Subject to the by-laws, the Board may, by at least two-
thirds vote of the directors present at a meeting called for the
purpose, or&r the termination of membership of a member of a
society.

(2) Where the Board terminates the membership of a m e m k
pursuant to this section -

(a) the Board shall

(i) within a period of one year, purchase from the
member at par valueall sharesin the society held
by the member, and

(ii) pay to the member all amounts held to his credit,
together with any interest accrued on those
amounts and the amount outstanding on loans
made to the society by the member with any
interest accrued on those amounts;

(b) the secretary of the swiety shall, within ten days from
the date on which the order ismade, notify the member
of the order.

No. 2 of 1997. The Co-operative Societies Act 1997. 17 ANTIGUA
AND

BARBUDA

(c) the member may appeal from the order to the next
general meeting of the society by giving written notice
of his intention to appeal to the secretary within thirty
days from the date he received notice of the order
pursuant to patagraph (b); and

(d) where the member appeals pursuant to paragraph (c)
a majority, or any greater percentage that may be
specified in the by-laws, of the members present at the
general meeting shall confirm or rescind the order.

(3) Where the address of a member the t e m t i o n of whose
membership is ordered pursuant to subsection (1) is unknown tothe
society after all reasonable efforts have been made to ascertain his
address for the purpose of making payment to him of all amounts
held to his credit, the society shall transfer those amounts to its
Reserve Fund.

(4) Where any amounts are transferred pursuant to subsection
(3), the society shall pay those amounts to the person entitled to them
on proof of his claim that is satisfactory to the society.

(5) Where a society transfers amounts held to the credit of a
member pursuant to subsection (3), it shall immediately submit to
the Registrar a return showing -

(a) the member' s name;

(b) the member's last known address; and

(c) the amounts transferred.

29. Members may terminate the membership of a member Termination of
where, membership by

members.

(a j the merr~ber has received at least ten days' nolice of the
general meeting at which his membership is to be
considered, and

(b) the termination is approved by a majority of at least
two-thirds of the members who

(i) are present at the general meeting, and

ANTIGUA
AND

BARBUDA

Suspension of
membership.

Appeal.

Re-admittance.

Voting rights.

Representatives of
member who is not
an individual.

18 The Co-operative Societies Act 1997. No. 2 of 1997.

(ii) cast votes on the resolution.

30. The Board of a registered society may by notice in writing
suspend a member for a pied not exceeding three months if they
are satisfied that he is guilty of misconduct.

31. (1) Subject to subsection (2), where a person's membership
is terminated pursuant to section 28 or 29, he may appeal the
termination to the Registrar in the prescribed manner, and the
Registrar shall confirm or set aside the resolution terminating the
membership.

(2) No person whosemembership is terminated for failure to pay
fees, assessments, rent or occupancy charges or to fulfil other
financial obligations to the society is eligible to appeal the termina-
tion to the Registrar pursuant to subsection (1).

(3) Where a person appeak the termination of his membership
pursuant to section 28 (2) (c) or this section, notwithstanding the
resolution terminating his membership, he continues to be a
member until the termination of his membership is confumed by
the meeting of members pursuant to section 28 (2) (d) or by the
Registrar pursuant to this section, as the case may be.

32. A person whose membership is terminated pursuant to
section 28 or 29, may be re-admitted to membership only by a two-
thirds majority vote of members present and voting at a general
meeting.

33. (1) A society that is a member of another society shall
exercise its voting rights in that other society through one of its
members duly appointed in that behalf.

(2) Delegates electedin accordance with the by-laws of a society
may, unless otherwise provided in the by-laws, exercise at annual
and special meetings of the society all the powers of members, and
in such cases all references in this Act to the exercise of powers by
members shall be deemed to include the exercise of powers by
delegates.

3441) Where a registered society is a member of another
registered society, the latter society shall recognise any individual
authorised by a resolution of the directors of tiie former society
to represent it at meetings of the latter society.

No. 2 of 1997. The Co-operative Societies Act 1997. 19 ANTIGUA
AND

BARBUDA

(2) An individual authorised pursuant to subsection (1) may
exercise, on behalf of the society, all the powers of that society as if
it were an individual member.

35. (1) Subject to the by-laws, members shall vote Voting procedure.

(a) by a show of hands, or

(b) where the majority of the members entitled to vote at
a meeting so demands, by secret ballot.

(2) The chairman of the meeting has the right to vote, and in the
event of a tie he is entitled to a second or casting vote.

(3) Subject to this Act and by-laws, a majority of the members
who are present and cast votes at a meeting shall decide all
questions.

36. General meetings of members must be held in Antigua and place of meetings.
Barbuda,

(a) at the place provided in the by-laws, or

(b) where the by-laws contain no provision, at the place
determined by the Board.

37. No member of a registered society s h d exercise the rights Members not to
of a member unless he has made such payment to the society in exercise rights
respect of membershipor acquired such interest in the society as are Unt"ue payrnent.

prescribed by the regulations or by-laws.

38. (1) This section does not apply to a society if it is continued ~i general
pursuant to this k t . meeting.

(2) Within two months of the date of its registration, a society
shallhold a general meeting at which all members are entitled to
be present and to vote.

(3) Notwithstanding subsection (2), where the Board applies to
the Registrar, he may extend the time for holding the general
meeting.

(4) The business at the general meeting mentioned in subsection
(2) must include,

ANTIGUA 20 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) at the adoption of the by-laws;

(b} the adaption of forms of share certificates and records
of the society;

(c} the authorising of the issue of shares;

(d) the appointment of an auditor to hold office until the
next annual general meeting;

(e) the making of banking arrangements; and

V ) the transaction of any other business.

Annual general 39. (1) A society shall hold an annual meeting in each year not
meetings. later than three months after the end of the financial year of the

society.

(2) Notwithstanding subsection (1) and notwithstand-ing that
the time for holding a general meeting as required by this section
has expired, where the Registrar receives a written request from the
Board, he may authorise the society to hold the annual general
meeting at any date not later than six months after the end of the
financial year of the society that he considers appropnate.

(3 ) The by-laws may provide for holding semi-annual or other
periodic meetings.

Special meetings. 40. (1) The Board may call a special meeting of members at any
time.

(2) Subject to subsection (3), the Board shall call a special
meeting of the members on receipt of a written request, specifying
the purpose of the meeting, from such number of members as may
be specified in the by-laws.

(3) The Board shall call the special meeting mentioned in
subsection (2) within twenty days of their receipt of the request and
the special meeting is required to dispose of the specific business
outlined in the request.

(4) The Registrar may call a special meeting of the society -

No. 2 of 1997. The Co-operative Societies Act 1997. 21 ANTIGUA
AND

BARBUDA

(a) for the purpose of reporting to the members the results
of any audit, examination or other investigation of the
society's affairs ordered or made by
him, or

(b) where the society fails to hold an annual generd
meeting fn accordance with section 38 (1) or (2), for the
purpose of enabling members to secure any informa-
tion regarding the affairs of the society that they are
entitled to receive pursuant to this Act and to deal with
any matters affecting the society.

41. (1) Where Meeting called
by Registrar.

(a) in the opinion of the directors it is irnprzcticable -

(i) to call a general meeting of members in the
manner in which meetings of members may be
called, or

(ii) to conduct a general meeting of members in the
manner presaibed in this Act or in the by-laws;
or

(b) for any reason, in addition to those described in
paragraph (a), the Registrar considers appropriate,

the Registrar on his own initiztive may if he is satisfied that such a
meeting is warranted in the circumstances order a general meeting
to be called, held and conducted in any manner that he directs.

(2) Without restricting the generality of subsection (I), the
Registrar may order that the quorum required in this Act or the by-
laws be varied or dispensed with at a general meeting called
pursuant to this section.

(3) A general meeting called pursuant to this section is deemed
to be a valid meeting.

42. (1) Except where a written statement is submitted by an Resolutionin lieuof
auditor pursuant to section 136 meeting.

(a) a resolution in writing signed by such number of
members as are entitled to vote on that resolution at a

ANTIGUA 22 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

general meeting of members as may be specified in the
by-laws is as valid as if it had been passed at a general
meeting of the members; and

(b) a resolution in writing dealing with any matter re-
quired by ths Act to be dealt with at a general meeting
of members and signed by all the members entitled to
vote at that meeting,

(i) satisfies all the requirements of thls Act relating
to meetings of members, and

(ii) subject to subsection (2), is effective from the
date specified in the resolution.

(2) The effective date of aresolution described in subsection (1)
(b) (ii) must not be earlier than the date on which the first member
signed the resolution.

(3) A copy of every resolution described in subsection (1) must
be kept with the minutes of the meetings of members.

Notice of meetings. 43. (1) A society shall giveat least tendays' notice of any annual
or special meeting to its members

(a) by sending the notice by mail to the members, at the
addresses given in the register of members, or

(b) by inserting the notice in not less than two issues of a
newspaper circulating in Antigua and Barbuda and
posting the notice in a place that, in the opinion of the
directors, is prominent and accessible to members.

(2) Notwithstanding any other provision of this Act, where a
society is required to senda statement, agreement, proposal or other
document to its members with anotice of a meeting and decides to
insert the notice of a meeting in anewspaperpursuant to paragraph
(1) (b), the society shall,

(a) in the notice, inform the members of the document,
giving a description of the document that, in the
opinion to the dir'ector, is adequate to describe its
nature, and

No. 2 of 1997. The Co-operative Societies Act 1997. 23 ANTIGUA
AND

BARBUDA

(b) make a copy of the document available to any member
or delegate who requests it.

(3) The notice of any special meeting must specify the purpose
for which the meeting is being called.

(4) The pmceedings or the business transacted at a general
meeting are deemed not be invalidated by reason only of the m-
receipt by a member of nolice of the meeting.

44. (1) Subject to subsection (2), for the purpose of determin- Fixing record
ing members date.

(a) entitled to receive payment of a bonus or dividend,

(b) entitled to participate in a distribution on liquidation,
or

(c) for any purpose in addition to that described in para-
graph (a) or (b), except the right to receive notice of or
to vote at a general meeting,

the Board may fix in advance a date as the record date for the
determination of members.

(2) The recorddate mentioned in subsection (I) is not to precede
by more than fifty days the particular action to be taken.

(3) Subject to subsection (4, for the purpose of determining
members entitled to receive notice of a general meeting, the Board
may fix in advance a date as the record date for the determination
of members.

(4) The record date mentioned in subsection (3) is not to precede
by more than fifty daysnor by less than eleven days thedate on which
the meeting is to be held.

(5) Where the Board does not fix a record date,

(a) the record date for the determination of members
entitled to receive notice of a general meeting is

ANTIGUA 24 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(i) the close of business on the day immediately
preceding the day on which the notice is given,
or

(ii) if no notice is given, the day on which the
meeting is held, and

(b) the record date for the determination of members for
any purpose other than that described in paragraph (a)
is deemed to be at close of business on the day on which
the Board passes a resolution relatiig to that purpose.

45. (1) Subject to subsection (2), the quorum at any annual
general or special meeting of members is that fixed in the by-laws.

(2) Except where all the members are directors, the number of
members present at an annual, general or special meeting must not
be less than the number of directors plus three.

(3) Subject to the by-laws, where a quorum is present at the
opening of ageneralmeeting of members the members present may
proceed with the busiiess of the meeting.

(4) Where a quorum is not present one hour after the time fixed
for the commencement of a general meeting of members, the
members present may adjourn the meeting to a time and place to be
determined by the Board but not later than thirty days after the date
of the adjourned meeting but may not transact any other business.

(5) If at the adjourned meeting there is no quorum the members
present constitute a quorum and may proceed with the meeting.

Delegates. 46. (1) Where the by-lawsof asociety provide for the nomination
and appointment of delegates to a general meeting

(a) the delegates shall exercise the powers of membership
at any annual or special meeting; and

(b) and reference in this Act with respect to the exercise of
any power mentioned in paragraph (a) shall be con-
strued as a reference to delegates.

(2) The members who elect delegatesmay, at a special meeting
called for the purpose or at any annual meeting,

No. 2 of 1997. The Co-operarive Societies Act 1997. 25 ANTIGUA
AND

BARBUDA

(a) remove the delegates in any manner provided for in the
by-laws;

(b) notwithstanding subsection (I), amend the by-laws to
eliminate the nomination and appointment of &l-
egates.

47. (1) A member who is entitled to vote at an annual meeting proposa~~.
of members may

(a) submit to the society notice of any matter that he
proposes to raise at the meeting; and

(b) discuss at the meeting any matter with respect to which
he would have been entitled to submit a proposal.

(2) Where amember submits aproposalandrequest the directors
of the society to send the proposal with the notice of the meeting at
which the proposal is to be presented or make the proposal available
to allmembers entitled to attendand vote at that meeting, the society
shall comply.

(3) Where a member submits a proposal and requests the society
to include in or attach to the notice,

(a) a statement by the member of not more than two
hundred words in support of the proposal, and

(b) the name and address of the member,

the society shall comply.

(4) A society is not required to comply with subseclions (2) and
(3) where

(a) the proposal is not submitted to the society at least
forty-five days before the anniversary date of the
previous annual general meeting of members;

(b) in the opinion of the directors, the proposal is submit-
ted by the member pnmady for the purpose of

(i) enforcing a personal claim or redressing a per-
sonal grievance,

ANTIGUA 26 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

@)

promoting general economic, political, racial,
religious, social or similar causes;

(c) the society, at the member's request, included a pro-
posal in a notice of a meeting of members held within
two years preceding the receipt of the proposal submit-
ted pursuant to subsection (I), and the member failed
to present the proposal at the meeting;

(d) substantially the same proposal was submitted to
members in the notice of a meeting of members held
within two years preceding the receipt of the members
request, and the proposal was defeated;

(e) in the opinion of the directors, the \rights conferred by
this section are being abused to secure publicity.

(5)Themember whorequest that the proposal and any statement
be sent with the notice of the meeting at which the proposal is to be
presented shall pay the cost of sending the proposal and statement,
unless the members present at the meeting provide otherwise by a
majority vote.

(6) No society and no person acting on behalf of a society shall
incur any liability by reasons only of circulating a proposal or
statement in comphce with this section.

(7) Were a society refuses to include a proposal in a notice of
a meeting, the society shall, within thirty days after receiving the
proposal,

(a) notify the member submitting the proposal of its
intention to omit the proposal from the notice of the
meeting, and

(b) send to the member a statement of the reasons for the
refusal.

(8) Where a member claiming to be aggrieved by refusd
pursuant to subsection (7) applies to the Registrar, the Registrar
may suspend the holding of the meting to which tbe p r o ~ s d is
sought to be presented and give any directions he considers
appropriate.

No. 2 of 1997. The Co-operative Societies Act 1997. 27 ANTIGUA
AND

BARBUDA

(9) The society or aperson claiming to be aggrievedby aproposal
may apply for permission for the society to omit the notice of the
meeting and, where the Registrar is satisfied that subsection (5)
applies, he may give permission.

(10) In this section "proposal" means a notice submitted to a
society pursuant to subsection (10) (a).

48. (1) Subject to this Act and the by-laws, the members of a Power to make
society may, at any annual meeting or any special meeting called by-1aws.
for the purpose, make, amend, repeal, replace or confim any by-
laws, where written notice of the proposed making, amendment,
repeal replacement or confmtion

(a) is forwarded to each member of the society with the
notice of the meeting at which the making, amend-
ment, repeal, replacement or confirmation is to be
considered by a majority of members present and
voting at that meeting; or

(b) is not forwarded to each member of the society with the
notice described in paragraph (a) by a three-fourths
majority ofmembers presentandvoting at themeeling.

(2) A member may make a proposal, in the manner provided in
section 47, to make, amend, repeal, replace or confirm any by-law.

49. (1) No by-law has any force or effect until three copies of the Effective date of
by-laws, certified to be true copies by the president and secretary of by-law.
the society, are filed with the Registrar and approved by him.

(2) Subject to subsection (3), whereaproposed by-law is certified
pursuant subsection (1) and receives the members' approval re-
quired in section 48(1), the by-law has immediate force and effect.

(3) A by-law described in subsection (2) ceases to have any force
or effect on the expiration of sixty days after the date of the general
meeting in which it is approved by themembers, unless, within that
siity day period, the by-law filed with the Registrar is pursuant to
subsection (1).

(4) Where the Registrar approves a by-law, he shall return to the
society one copy of the by-law with his approval stamped on tl~e by-
law.

ANTIGUA 28 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

PART lV

MANAGEMENT

Board of directops. 50. (1) Every society shall be managed by a Board of directors
which shall be constituted in accordance with this act and the by-
laws of the society.

(2) The Board shall be constituted by not less than five or not
more than thirteen directors, as specified in the by-laws.

(3) The members of a society may amend the by-laws to vary the
number of directors, but no amendment to decrease the number of
directors affects an incumbent director.

(4) A person who

(a) has ken sentenced by a court in an country for an
offence involving dishonesty and has not received a
free pardon for that offence;

(b) is in default of debt owed to the society or compounds
with his creditors;

(c) is of unsound mind and has been so found by a court
in Antigua and Barbuda;

(d) is or becomes bankrupt;

(e) is under the age of eighteen years;

Cf) is not a member of the society or a duly appointed
representative of a member society, or

(g) is already part of the management of another society of
the same type,

may not constitute part of the management of a society, until his
disability is removed, but he shall retain his membership of the
society ddung the period of such disability.

(5) For the purposes of this Part "management" includes

No. 2 of 1997. The Co-operative Societies Act 1997. 29 ANTIGUA
AND

BARBUDA

(a) a person who holds membership of any committee
established by a society; and

(b) a person who is employed by the Board.

51. (1) Every society Officers.

(a) is required to have a president, treasurer and a secre-
tary, and

(b) may have any officers in addtion to those mentioned
in paragraph (a) that are provided for in the by-laws.

(2) Subject to the by-laws,

(a) the Board may designate the offices of the society,
appoint persons as officers, specify the officers' duties
anddelegate powers tomanage thebusiness andaffairs
of the society to them; and

(b) adirectormay beappointed to any office of the society.

(3) Subject to the by-laws no person shall be president or vice-
president of a society unless he is a director of the society.

(4) No committee of the Board may -

(a) fill a vacancy among the hectors;

(b) declare a bonus or dividend;

(c) approve any financial statement of the society;

(d) submit to the members any question or matter requir-
ing the approval of members; or

(e) make decisions where the Act or the by-laws require a
two-hds majority or unanimous vote of the Board.

52. (1) On the registration of a society. the individuals whose Provisional directors
m e s appear in the application for registration as having been andelecteddirectors.
appointed and have consented to act as provisional directors

ANTIGUA 30 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) shall have all the powers and perform the duties of
directors; and

(b) shall hold office until the frst general meeting.

(2) At the first general. meeting and at every annual general
meeting the directors must be elected in accordance with this Act,
the regulations and the by-laws.

POW^ of ~ o a r d . 53. Subject to this Act, theregulations andtheby-laws, the Board
shall

(a) exercise the powers of the society directly, or indirectly
through the employees and agents of the society;

(b) direct the management of the business and affairs of
the society.

Committees 54. (1) Without prejudice to anything contained in sections 50
generally. and 51, the members of the society shall elect a Supervisory

Committee which shall perform such duties as are prescribed by the
by-laws.

(2) Without prejudice to subsection (I), the Boardmay establish
committees for the more efficient management of various aspects
of the business or affairs of the Society.

(3) A Committee for the purposes of subsection (2) may consist
of members of the Board and other members of the society.

(4) No committee of the Board may -

(a) fill vacancy among the directors;

(b) declare a bonus or a dividend;

(c) approve any financial statement of the society;

(d) submit to the members any question or matter requir-
ing the approval of members; or

(e) make decisions where the Act or the by-laws require a
two-thirds majority or unanimous vote of the Board.

No. 2 of 1997. The Co-operative Societies Act 1997. 31 ANTIGUA
AND

BARBUDA

55. (1) Committees appointed pursuant to section 54(2) shall Tenure of
hold office for a period not exceeding one year. committees

generally.

(2) A member of a committee appointed pufsuant to section 54
(2) may be removed by resolution of the society or of the Board, as
the case may be.

(3) The removal of a member of a committee who is a d i i t o r
shall not affect his office as a director.

(4) A committee shall

(a) fuc its quorum at not less than a majority of its
members;

(b) keep minutes of its proceedings;

(c) submit to the Board at each meeting of the Board or to
the annual general meeting of the society, as the case
may be, the minutes of the committee's proceedings
since the most recent meeting of the Board or of the
society.

56. (1) Every credit union s h d have a credit committee which Credit committee.
shall be elected by its members at the annual general meeting.

(2) The members of a credit committee hold office for such term
as the by-laws provide and klil their successors are elected.

(3) The credit committee shall consist of the number of members
fixed by the by-laws, which shall be no fewer than three.

(4) No person who is amember of the Board or of the supervisory
committee or who is an employee of the credit union shall be a
member of the credit committee.

(5) A majority of the credit committee, not including the
secretary or treasurer, constitutes a quorum.

(6) A member entitled to vote at an e l d o n of members of the
credit committee, if he votes, shall cast there at a number of votes
equal to, or less than, the number of members of the credit
committee to be elected, and the member shall distribute the votes
among the candidates in such manner as he sees fit, butno candidate
a shall receive more than one vote from each member.

ANTIGUA 32 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(7) Where a vacancy occurs in the credit committee, the Board
may fill the vacancy until the next annual meeting of the credit
union.

(8) The by-laws of the credit union may provide for the election
and retirement of members of the Credit Committee in rotation so
that no member of the &t committee shall be elected for a term
of more than three years but no person may serve as a member of
the Credit Committee of a society for more than two consecutive
terms or an aggregate of six successive years.

Duties of aedit 57. The credit committee s h d consider all applications for loans
committee. and make recommendations to the Board in respect of the applica-

tions and perform such duties as are prescribed by this Act, the
regulations and the by-laws of the credit union.

Approval of I-. 58. (1) The Board may, upon such terms and conditions as it
specifies, authorise the credit committee to approve loans to
members.

(2) The credit committee may upon such terms and conditions
as the Board specifies, authorise the treasurer, manager other
employees of the credit union to approve loans to members.

(3) Any person authorised by the Board to approve loans under
subsection (1) or (2) shall submit a written monthly report to the
Credit committee stating the number of loan applications received,
the number of loans granted and the security, if any, obtained for
such loans.

(4) The responsibilities and duties of any person authorised to
approve loans under subsection (1) are concurrent with the respon-
sibilities and duties of the credit committee.

Credit committee re- 59. (1) The credit committee shall
pcrts.

(a) meet at least once every month;

(b) keep minutes of its meetings;

(c) submit a report to the Board stating

(i) the number of loan applications received;
(ii) the number and category of loans granted,

No. 2 of 1997. The Co-operative Societies Act 1997. 33 ANTIGUA
AND

BARBUDA

(iii) the security obtained for such loans granted,
(iv) applications denied, and delinquent loans; and

(d) submit an annual report on the matters referred to in
paragraph (c) totheannualmeeting of thecredit union.

(2) The members of a society may, by special resolution in a
special meeting called for the purpose, remove a credit committee
which fails to comply with paragraph (c) of subsection (1).

60. (1) The members may, by resolution passed by two-thirdsof Removal of member
the votes cast at a general meeting called for the purpose, remove
a member of the credit committee before the expiration of his term
of office, and shall at that meeting elect another member in place
of the first mentionedmember for the unexpired portion of his term.

(2) The notice calling the meeting of members referred to in
subsection (1) shall specifically state that the purpose of themeeting
is to remove the member of the credit committee who is named in
the notice.

(3) The member of the credit committee removed under this
section has the right to make such representations to the members
regarding the resolution for his removal as he thinks fit, and may
be represented by an attorney-at-law or an agent.

61. When a member of the credit committee fails to attend Removal of
three consecutive meetings without, in the opinion of the Board, member of credit
having reasonable cause therefor or fails to perform any of the E''' by
duties allotted to him as amember of the committee, his position
on the committee may be declared vacant by the Board who may
then appoint a qualified person to fill the vacancy until the next
annual meeting of the credit union.

62. (1) Every credit union shall have and where thought supervisory
advisable a society may have a supervisory committee who shall be committee.
elected by its members at the annual general meeting.

(2) Themembers of asupervisory committee shall holdoffice for
such term as the by-laws provide and until their successors are
elected.

(3) The supervisory committee shall consist of the number of
members fixed by the by-laws, which shall be not fewer than three.

ANTIGUA
AND

BARBUDA

34 The Co-operative Societies Act 1997. No. 2 of 1997.

Duties of supervi-
sory committee.

Removal of mem-
ber of supervisory
committee.

(4) No person who is amember of the board or credit committee
or who is an employee of the credit union or other society shall be
a member of the supervisory committee.

(5) A majority of the supervisory committee constitutes a
q u m .

(6) A member entitled to vote at an election of members of the
supervisory committee; if he votes, shall cast thereat a number of
votes equal to or less than the number of the members of the
supervisory committee tobe elected, andthemember shall distribute
the votes amount the candidates in such manner as he sees fit, but
no candidate shall receive more than one vote from each member.

(7) Where a vacancy occurs in the supervisory committee, the
supervisory committee may fill such vacancy until the next annual
meeting of the cred~t union or society.

(8) The by-laws of the credit union or other society may provide
for the election and retirement of members of the supervisory
committee in rotation, but in that case no member shall be elected
for a term of more than three years, and no person may serve as a
member of the Supervisory Committee of a society for more than
two consecutive terms or an aggregate of sin successive years.

63, The supervisory committee shall examine the books of the
credit union or other security, confirm the cash instruments,
property and securities of the credit union or other society and
conim the deposits of the members and perform such other duties
a are prescribed by this Act, the regulation and the by-laws of the
credit union or other society.

64. When a member of the supervisory committee fails to
attend three consecutive meetings of the committee without, in
the opinion of the supervisory committee, having a reasonable
cause therefor, or fails to perfom any of the duties allotted to him
as amember of the committee, his position on the committeemay
be declared vacant by the remaining members of the committee
who may appoint a qualified person to fill the vacancy until the
next annual meeting of the credit union or other society.

65, The Board may appoint sgch person as it co~lsiders
aecessar-ytaassist he supervisory committeem itsduties, anOp3~
those person such remuneration as it thmks fit.

No. 2 of 1997. The Co-operative Societies Act 1997. 35 ANTIGUA
AND

BARBUDA

66.(1) When the supervisory commiaeeisof theopinion thatthe Misappropriation
funds, securitiesor other property of the credit union or other society etC.
have been misappropriated or misdirected, or in the event that the
by-laws of the credit union, or other society, this Act or the
regulation have been contravened by the Board, the credit commit-
tee or a member thereof or an officer or employee engaged by the
Board the supervisory committee shall forthwith inform the Reg-
istrar in writing.

(2) The Supervisory Committee shall with the approval of the
Boardappoint anauditor or someotherbody to assist in determining
whether any of the funds, securities or other property of the credit
union other society have been misappropriated or misdirected and
the remuneration of any auditor or other body to be appointed shall
be determined by the supervisory committee and paid by the credit
union or other society.

(3) In the event of a misappropriation or misdirection- or a
suspectedmisappropriation or s u s p e c t e d m i s d
in subsection (I), the supervisory committee may suspend any
member of the Board.

(4) The Supervisory Committee shall forthwith request the
Board to summon a general meeting of the members to be held
within fourteen days after the suspension referred to in subsection
(3); and where the Board fails to summon such a meeting the
supervisory committee shall summon the meeting within seven
days after the expiry of the period of fourteen days.

(5) The supervisory committee shall report to the general
meeting all thecircumstancesof any misappqniationormisdirection
of funds, securities or other property and the reasons for any
suspension.

(6) The members of the credit union or other society may, by
resolution, dismiss from office any person suspended under subsec-
tion (3), and, when the members of the d i t union or other society
do not dismiss from office any a person so suspended, that person
shall be reinstated forthwith.

67. (1) The supervisory committee shallmeet at least once every Meting .
month, and shall at each such meeting examine the affairs of the
credit union or other society.

ANTIGUA 36 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(2) The supervisory committee shall keep minutes of its meet-
ings and shall,

(a) within seven days of each meeting report the results
thereof in writing to the Board; and

(b) submit a written report to the annual meeting of the
members of the credit union or other society.

Removal of mem- 68. (1) The members may, by resolution passed by two-thirds of
bers of supervisory
committee.

the votes cast at a general meeting duly called for that purpose,
remove a member of the supervisory committeebefore the expira-
tion of his term of office, and shall by vote cast at the meeting elect
another member in his stead for the unexpired portion of his term.

(2) The notice callmg the meeting of membm referred to in sub-
d o n (1) shall state that the pqose of the meeting is to remove the
member of the supervisory committee who is named in the notice.

(3) The member of the supervisory committee removed under
this section has the right to make such representations to the
members regarding the resolution for his removal as he thlnks fit,
and may be represented by an attorney-at-law or an agent.

Election of directors. 69. (1) Subject to section 70 and subject to the regulations and
the by-laws

(a) the election of directors must take placeannually at the
annual general meeting;

(b) the directors hold office until the conclusion of the
meeting at which their successors are elected, and are
eligible for re-election;

(c) where the number of nominees exceeds the number of
directors to be elected, the election of directors must be
by secret ballot;

(d) every member has the right to vote for the number of
directors to be elected and any ballot that contains the
names of more than the number to be elected b void;

(e) where there are vacancies on the Board but the remain-
ing directors constitute a quorum, they shall call a

No. 2 of 1997. The Co-operative Societies Act 1997. 37 ANTIGUA
AND

BARBUDA

special meeting for the purpose of electing members to
fill any such vacancy;

fl where there is a vacancy on the Board and here is not
a quorum of diuectors, the remaining dmxtors shall
dl a special meeting for the purpose of electing
members to fill any vacancy;

(2) Where an election of directors required by this Act, the
regulations or the by-laws does not take place at the proper time, the
directors then in office shall continue in office until their successor
are elected.

(3) Subject to the by-laws of a society, not more than one-third
of the directors may be employees of a society.

(4) Unless a reasonable excuse is received by the meeting, no
person may be elected a director if he is not present at the meeting
at which the election is beiig conducted.

70. (1) Subject to subsection (2) the directors of a society shall Tenure of directors.
be elected for a term of three years, but no person may serve as a
director of a society for more than two consecutive terms or an
aggregate of six years.

(2) After the commencement of this Act, the Boards of all
societies shall resign at their next annual general meeting and new
Boards shall be elected on a rotational basis as follows:

(a) at least one-third of the directors to serve for 1 year,

(b) at least one-third of the directors to serve for 2 years,

(c) the remainder of the drectors to serve for 3 years.

thereafter, each elected director shall serve for aterm of three years.

71. (1) Subjecttotheby-laws, theBoardmay withoutauthorisation Bmowingpwersof
of the members of a society Board.

a ) bomw money on the credit of the society;

(b) issue, re-issue, sell or pledge debt obligations of the
society;

ANTIGUA 38 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(c) give a guarantee on behalf of the society to secure
performance of an obligation of any person; and

(d) mortgage, charge, hypothecate, pledge or otherwise
create a security interest in all or any property of the
society, owed or subsequently acquired, to secure any
debt obligation of the society.

(2) A sale, lease or exchange of all or substantially all of the
property of a society, other than in the ordinary course of business
of the society, must be approved by the members in a manner
provided in subsection (3) to (7).

(3) The directors shall send, in the manner provided in section
43, a notice of a special meeting to consider the sale, lease or
exchange mentioned in subsection (2) to each member.

(4) The notice mentionedin subsection (3) must include or must
be accompanied by a copy or summary of the agreement of sale,
lease or exchange mentioned in subsection (2).

(5) At a special meeting held pursuant to this section, the
members may, by special resolution.

(a) authorise the sale, lease or exchange mentioned in
subsection (2), and

(b) frx or authorise the directors to fix, any terms and
conditions of sale, lease or exchange;

(6) Each member of the society has the right to vote with respect
to sale, lease or exchange mentioned in subsection (2).

(7) A sale, lease or exchange mentioned in subsection (2) is
adopted when the members of the society have approved the sale,
lease or exchange by a special resolution.

Validity of acts 72. The act of a director or officer is valid notwithstanding an
of diredors, and

officers. irregularity in his election or a defect in his appointment or
qualification.

Indeddonof 73. (1) Subject to subsections (2) and (3), a society may
directors. indemnify -

No. 2 of 1997. The Co-operative Societies Act 1997. 39 ANTIGUA
AND

BARBUDA

(a) a director or officer of the society;

(b) a former director or officer of the society;

(c) a person who acts or has acted at the request of the
society as a director or officer of a body corporate of
which the society is or was a member or a creditor,

against costs, charges and expenses, including an amount paid to
settle an action or satisfy a judgement, reasonably incurred by that
person with respect to a civil, &mind or administrative action or
pmceedmg to which that person is made a party by reason of his
being or having been a duector or officer of the society or body
corporate.

(2) A society may indemnify a director, officer, or other person
only where that person

(a) acted honestly and in good faith with a view to the best
interest of the society;

(b) in the case of a h i n a l , civil or administrative action
or procee&ng that is enforced by a monetary pen Jty,
had reasonable grounds for believing that the conduct
was lawful.

(3) No society shdl indemnify a director, officer or other person
mentioned in subsection (1) with respect to an action by or on behalf
of the society toobtainajudgement hits favour to which that person
is made a party by reason of his being or having been a director or
an officer of the society, against costs, charges and expenses
reasonably incurred by that person in connection with the action
unless

(a) the society has the appval of the court; and

(b) that person fulfils the conditions described in sub-
section (2).

(4) Notwithsm.dling subsections (1) to (31, a society shdl
kdennify a iiirecmr, officer or other person mentioned in subsec-
tion (I) who has been substantially sumssfu% in the defence of a
clxril, cMmd or administrative action or promding to which that
person is made apmy by reason of his being or have been a director

ANTIGUA 40 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

or officer of the society or body corporateagainstcoasts, chargesand
expenses reasonably incurred by that person with respect to the
action or proceedings.

(5) A society or a d i i m r , officer or other person mentioned in
subsection (I), may apply to the court for an order approving the
indemnity and the court may make the order.

(6) On an application pursuant to subsection (5) the court may
order notice to be given to an interested person, and that interested
person is entitled to appear and be heard in person or by an attomey-
at-law.

~ u t y of care of 74. Every director and officer of a society in exercising his
directors and powers and discharging h s duties shall
officers.

(a) act honestly and in good faith with a view to the best
interests of the society; and

(b) exercise the care, diligence and skill that a reasonably
prudent person would exercise in comparable circum-
stances.

Ambit of duty. 75. The provisions of a contract, the by-laws or the circum-
stances of his appointment do not relieve a director from

(a) the duty to act in accordance with this Act and the
regulations; and

(b) liabiltty that by virtue of arule of law would otherwise
attach him with respect to negligence, default, breach
of duty or breach of trust of which he may be guilty in
relation to the society.

Liability of 76. (1) Where directors vote for, consent to aresoluiion authoris-
diiectors. ing or approve by any other means

(a) the purchase of shares of another society contrary to
section 94;

(b) the payment of adividend on shares contrary to section
123;

(c) the payment of a bonus contrary to section 123;

No. 2 of 1997. Tke Co-operafive Societies Act 1997. 41 ANTIGUA
AND

BARBUDA

(dJ a loan or guarantee or the giving of financial assistance
contrary to section 115;

(e) a payment of an indemnity described in section 73 to
director or a former director, without the approval of
the court required by subsection (3) of that section; or

V ) an act not consistent with the plupose of the society as
set out in its by-laws and with respect to which the
society has pad compensation to a person;

they are jointly and s e d y lhbletomakegoodany loss ordamage
suffered by the society.

(2) On the application of a director, the court may declare
whether or not, having regard to any ofthe ci~cumstances the court
consider appropriate,

(a) the society is insolvenf; or

fb) the payment of a bonus or dividend or the lending of
money would make the society insolvent.

(3) The liability imposed by subsection (1) is in adhtion to and
not in derogation from a liability imposedon adirector by any other
enactment or law.

(4) For the purposeof this section, a director who is present at
a meeting of directors or of a committee is deemed to have cast an
affirmative votegiven consent to aresolution or given the approval
mentioned in subsection (I), unless,

(a) the drector's dissent is entered in the minutes of the
meeting; or

(b) the director's written dissent is

(i) delivered to the secretary of the meeting before
its adjournment, or

(ii) delivered or sent by registered mail to the regis-
tered office of the society immediately after the
adjournment of the meeting.

ANTIGUA 42 The Co-operarive Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(5) Adirector whovotes for aresolution mentioned in subsection
(1) is not entitled to dissent under subsection (4).

(6) Where a director is not present at a meeting of directors or
of a committee at which a vote, resolution or approval mentioned
in subsection (1) is cast or given, he is deemed to have cast an
affirmative vote, consented to the resolution or given approval,
unless, within fourteen days after becoming aware of the proceed-
ings, the director delivers or sends by registered mail his written
dissent to the registered office of the society.

(7) On receipt of a written dissent, the secretary of the society
shall

(a) certify on the written dissent the date, time and place
it is received, and

(b) keep the written dissent in the minutes of the meeting
at which the resolution was passed.

(8) No action to enforce a liability imposed in subsection (1) is
to be commenced after two years from the date of the meeting at
which the vote, resolution or approval was taken or given.

(9) In an action to enforce a liability imposed in subsection (I),
the Court may, on the application of the society or a defendant,

(a) join as a defendant a person who received a benefit as
a result of the resolution complained of; and

(b) make the person mentioned in paragraph (a) liable to
the society jointly and severally with the directors to the
extent of the amount paid to him.

(10) A director is not liable under subsection (1) where he

(a) proves that he did not know or could not reasonably
have known that the act authorised by the resolution
was contrary to this Act;

(b) relies and acts in good faith

(i) on statements of facts represented to him by an
officer of the society to be correct, or

No. 2 of 1997. The Co-operative Societies Act 1997. 43 ANTIGUA
AND

BARBUDA

(ii) on statements contained in a written report or
opinion of the auditor of the society or a profes-
sional person engaged by the society who is
competent to giveadvice in respect to the matter.

(1 1) A director who is found liable pursuant to subsection (1) is
entitled to apply toacourt for an order compelling amember or other
recipient to pay or deliver to the director any money or property that
was paid or distributed to the member, or other recipient contrary
to section 94,115 or 173.

(12) In connection with an application pursuant to subsection
(1 1) and where the court is satisfied that it is equitable to do so, it
may9

(a) order a member or other recipient to pay or deliver to
a director any money or property that was paid or
distributed to the member or other recipient contrary
to section 93,115 or 123; or

(b) make an order, other than that described in paragraph
(a), that it considers appropriate.

77. A director or officer, or an associate of a director or officer, Misuse of
who, in connection with a transaction relating to shares of a society confidentid
or a debt obligation of a society, makes use of confidential informa- infmion.
tion for the benefit or advantage of himself or an associate that, if
generally known, might m n a b l y be expected to affect matexially
the value of the share or the debt obligation

(a) is liable to compensate any person for a direct loss
suffered by the person as a result of the transaction,
unless the information was known or reasonably
shouldhave been known to the person at the time of the
transaction; and

(b) is accountable to the society for any direct benefit or
advantage received or receivable by h i or his associ-
ate, as the case may be, as a result of the transaction.

78. (1) Subject to subsection (lo), a director or offi= of Material
a society who contracts.

AIVI'IGUA 44 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) is a party to a material contract or proposed material
contract with the society, or

(b) is a director or officer of, or has a material interest in,
aperson who is party to amaterial contract or proposed
material contract with the society,

shall disclose in writing to the society, or request to have entered in
the minutes of meetings of directors, the nature and extent of his
interest.

(2) The disclosurerequiredby subsection (1)mustbemadeinthe
case of a director

(a) at the meeting at which a proposed contract is first
considered,

(b) if the director was not then interested in the proposed
contract at the first meeting after he becomes so
interested;

(c) if the director becomes interested after a contract is
made, at the first meeting after he becomes so inter-
ested; or

(d) if a person who is so interested in a contract becomes
a d i i tor , at the first meeting after he becomes a
director.

(3) A disclosure required by subsection (1) must be ma& in the
case of an officer who is not a director

(a) immediately after he becomes aware that the contract
or proposed contract is to be considered or has been
considered at a meeting of the Board;

(b) if the officer becomes interested after a contract is
ma&, immediately after he becomes so interested; or

(c) where he has an interest in acontract before becoming
an officer, immediately after he becomes an officer.

(4) If a material contract or proposed material contract is one
that in the ordinary course of the society's business would not

No. 2 of 1997. Z'he Co-operative Societies Act 1997. 45 ANTIGUA
AND

BARBUDA

require approval by the directors or members, a director or officer
shall disclose in writing to the society or request to have entered in
the minutes of meetings of the Board the nature and extent of his
interest after he becomes aware of the contract orproposedcontract.

(5) A Uector referred to in subsection (1) may take part in
&scussions to consider, or vote on aresolution to approve acontract
that he has an interest in, if the contract

{a) is an arrangement by way of security for money lent by
hun to the society or obligations undertaken by him for
the benefit of the society or a member of the society;

{b) is aconmct that relates principally to his remuneration
as a director, officer, employee or ageqt of the society
or a member of the society;

(c) is a contract for indemnity or insurance pursuant to
section 73: or

{d) is a contract with an afliliate.

(6) Where a director is not entitled to vote at a meedng pursuant
to subsection (5) andhis presence is required toconstitute aquorum
at ameeting of directors, a decision of the directors is deemed not
to be invalid only by reason of the absence of the director.

(7) For the purposes of this section, a generd notice to the
directors by a director or officer declaring &at he is to be regarded
as interested in any contract ma& with that penor, is a sufficient
declaration of interest in relation to any contract made with that
person.

(8) Where

(a) adirector or officer discloses his interest in accordance
with this section. and

(b) the contract in which the diecter or officer has a
material interest

(i) is approved by the directors or members, and

ANTIGUA 46 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(ii) is reasonable and fair to the society at the time it
was approved,

the material contract is neither void nor voidable by reason only of
that relationship or by reason only that a director with an interest
in the contract is present at or is counted to determine the presence
of aquorum at ameeting of the Board or committee that authorised
the contract.

(9) Where a director or officer of a society fails to disclose his
interest in amaterial contract in accordance with this section acourt
may, on the application of a society or a member of the society, set
aside the contract on any terms that the court considers appropriate.

Meetin&(; of 79. (1) Subject to the by-laws, the directors may meet at any
generally. place, and on any notice that they consider appropriate.

(2) The president

(a) may call a meeting of directors at any time; and

(b) on the written request of at least two directors, shall call
a meeting within fourteen days of the receipt of the
request.

(3) A majority of the directors constitute a quorum at any
meeting of directors.

(4) Subject to the by-laws, anotice of ameeting ofdlrectorsneed
not specify the purpose of or other business to be transacted at the
meeting.

(5) A d i i t o r may in any manner waive a notice of a meeting
of diitors.

(6) For the purpose of subsection (3 , attendance of a director at
a meeting of d i i tors is deemed to be a waiver of notice of the
meeting, unless the director attends the meeting for the express
purposeof objecting to the transaction of any business on the ground
that the meeting is not lawfully called.

(7) Where the time and place of an adjourned meeting is
announced at the original meeting, notice of an adjourned meeting
of directors is not required to be given.

No. 2 of 1997. The Co-operative Societies Act 1997. 47 ANTIGUA
AND

BARBUDA

80. (1) Subject to the by-laws, where all the directors consent, a Meetings by tele-
meeting of directors or of a committee may be held by means of p

hone etc.

(a) a telephone system; and
(b) acommunication facility other than a telephone,

that permits all persons participating in the meeting to hear and
speak to each other, and a person so participating is deemed to be
present at that meeting.

(2) Unless this Act, the regulations or the by-laws require a
meeting, a resolution of the directors may be passed without a
meeting where

(a) all the directors consent to the resolution in writing;
and

(b) the consent is filed with the minutes of the proceedings
of the directors.

81. (1) A director of a society is entitled to receive notice of and Attendance at
to attend and be heard at every general meeting of members meetings.

(2) Where a director
- /---

(a) resigns,

(b) receives a notice of otherwise learns of a meeting of
members called for the purpose of removing him from
office, or

(c) receives a notice or otherwise learns cf a meeting of
directors or members at which =other prscn is to he
appointed or elected to fill his office, whether because
of his resignation or removal or because his tam of
office has expired or is about to expire,

he is entitled to submit to the society a written statement giving the
reason for his resignation or the reasons he opposes any proposed
action or resolution.

(3) A society shall immediately send a copy of the statement
mentioned in subsection (2) to the Registrar and shall make
available a copy of the statement to every member.

ANTIGUA
AND

BARBUDA

Organisational
meeting of
directors.

Director ceasing
to hold office.

48 The Co-opemtive Societies Act 1997. No. 2 of 1997.

(4) No society or person aeting on its behalf incurs any liability
by reason only of circulating a director's statement sent in compli-
ance with subsection (3).

82. (1)Subjectto subsection (S), the directors will holdameeting
as soon as possible after the issue of the society's certificate of
registration.

(2) The directors may, at the meeting mentioned in subsec-
tion (1)

(a) p s resolutions establishing policies of the society;

(b) adopt forms of corporate records;

(c) appoint officers;

(d) autlmise the issue of secwities;

(e) appoint an auditor to hold office until the first general
meeting of the members;

Cf) make banking or other financial arrangements;

(g) appoint authorisxi signing officers;

(h) adopt o p t i n g policies; and

(i) transact any other business.

(3) A director may call the meeting of directors mentioned in
subsection (1) by giving not less than fivedays' notice of themeeting
to each director, stating the time and place of the meeting.

(4) Thenotice mentioned in subsection (3) may be waived where
all di i tors are in attendance at that meeting of directors.

(5) This section doesnotapply to asociety that is deemed to have
been registered under this section.

83. (1) A director ceases to hold office when he

(a) dies or resigns,
(b) is removed in accordance with section 84, or

No. 2 of 1997. The Co-operative Societies Act 1997. 49 ANTIGUA
AND

BARBUDA

(c) is no longer qualified in accordance with this Act.

(2) A resignation of a d i i t o r becomes effective on

(a) the date when the resignation was received; or

(b) the date specified in the resignation.

84. (1) Subject to the regulations and by-laws, the members of Removal of
a society may, by special resolution, remove any director from direaws.
ofice.

(2) A vacancy created by the removal of a director may be filled
at the meeting of the members at which the director is removed or
where not so filled, may be filled pursuant to section 69 (1) (e).

85. (1) Within thlrty days after achange is made in its directors, Notice of change
a society shall send to the Reg i s m a notice in the prescribed form
setting out the change and the Registrar shall file the notice.

(2) Notwithstanding subsection (I), where a society sends the
annual return in accordance with section 141, within thuty days
after a change its made in its directors, it is not required to send the
notice required by this section.

86. A society may by resolution passed by a majority of the Declaration by
members at an annual or special meeting require all directors and directors and
officers to sign annually or at any other time that may be specified Officers.
in the resolution a declaration relating to

(a) faithful performance of duties;

(b) secrecy of transactions with members, and

(c) faithful and loyal support of the society.

87. The &tors may require that every person appointed to an Bonding.
office who receives, manages or handles goods or merchandise or
manages or handles the expenditure of money on behalf of the
society shall give to the diitors, before entering on his duties as
an officer, security or a bond in the prescribed amount.

88. (1) NO director and no member of a committee is entitled to Remuneration
be paid any remuneration inconnection with his duties as a director of directors.
or commi#ee member on behalf of a society or his attendance at
meetings.

ANTIGUA 50 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(2) Directors and members of committees may be reimbursed for
expenses incurred by reason of the performance of their duties and
functions as directors or members of committees.

(3) A society may purchase and maintain insurance for the
benefit of a director, member of a committee, officer or employee
against a hbility, loss and damage incurred by that person while
serving the society as a director, member of committee, officer or
employee.

Remuneration of 89. Subject to section 88 and the by-laws, the directors shall fix
officers and
employees. the salary of any officers appointedby them and shall approve a scale

of remuneration for any employees of a society.

PART V

FINANCING

shares. 90. (1) A society may sell shares to its members only, but the
shares must have par value fmed by the by-laws.

(2) Unless a society is required by this Act or any other enactment
to limit its number of shares it shall have an ~lnlimited number of
shares.

(3) A share in a registered society is personal property and a
shareholder is entitled toan annual statement showing the number
of shares that he owns.

Share capital. 91. (1) A society shall express its share capital in its by-laws as

(a) an amount of money divided into a specified number
of shares set out in the by-laws; or

(b) an amount comprising an unlimited number of shares
with a specfied par value.

(2) This section does not apply to credit unions.

~ssw of shares. 92. (1) Subject to subsection (2), a society may issue shares at
my time and for any consideration that the directors consider
approprrate.

No. 2 of 1997. The Co-operative Societies Act 1997. 5 1 ANTIGUA
AND

BARBUDA

(2) Subject to the by-laws, a society shall sell its shares at their
par value.

(3) No member is liable to the society or its creditors beyond the
sum remaining unpaid on the member's subscription for shares.

(4) No society shall issue a share until it is fully paid

(a) in money; or

(b) in property that, in the opinion of the directors, is the
fair equivalent of the money that the society would
have received if the share had been issued for money.

(5) For the purposes of subsection (4) (b), when determining
whether property is the fair equivalentof amoney consideration, the
directors may take intoaccount reasonable charges and expenses of
organisation and reorganisation and payment for property reason-
ably expected to benefit the society.

(6) For the purposes of this sec$on "property" does not include
a promissory note or a promise to pay.

93. (1) A society may, by specd resolution, amend its by-laws Alternation of
to increase or decrease its capital and, for that purpose, may authorised capital.

(a) subdivide any shares;

(b) consolidate shares into shares of a larger par value, but
the par value of consolidated sharesmustnot be greater
than one hundred dollars;

(c) cancel any shares that at the date of registration of the
by-laws, have not been subscribed for or agreed to be
issued and diminish the amount of its capital by the
amount of the par value of the shares so cancelled;

(d) extinguish or reduce the liability on any of its shares
with respect to capital not paid up;

(e) with or without extinguishing or reducing liability on
any of its shares, cancel any paid up capital that is lost
or unrepresented by available assets; and

ANTIGUA
AND

BARBUDA

Limitation on
purchase of
shares.

Transfer of shares
general1 y.

52 The Co-operative Societies Act 1997. No. 2 of 1997.

(f) with or without extinguishing or reducing liability on
any of its shares andeither withor withoutredwhgthe
number of such shares, pay off and paid-up capital that
is greater than the requirements of the society.

(2) TheRegistrarmay approve aby-law mentioned in subsection
(1) where he is satisfied that

(a) the by-law has been made in accordance with this Act;

(b) the holders of all shares of the society affected by the
by-law have approved the by-law by a specla1 resolu-
tion passed by the members at ageneralmeeting called
for the purpose; and

(c) in the case of a by-law providing for areduction in the
capital of the society

(i) all creditors who are liable to be a f f d have
been notified of the by-law and have signified
their approval; or

(ii) appropriate steps have been taken by the society
to adequately safeguard the interest of its credi-
tors.

94. (1) Subject to the approval of the Registrar, only a
registered society may purchase more than one-fifth of the shares
of another society where

(a) it is insolvent;

(b) the proposed purchase or acquisition would not
render the purchasing society insolvent; or

(c) subject to subsection (2), the proposed purchase
or acquisition would not, in the opinion of the
Board, be detrimental tothe financial stability of
the society.

95. (I j A sharemaybe transfened with the approval of the Board
to any other member at the option of the transferor, but if the
transferee is not amember, he must be approvedas amemberby the
Boaxi, or the general meeting according to the by-laws relating to

No. 2 of 1997. The Co-operative Societies Act 1997. 53 ANTIGUA
AND

BARBUDA

the admission of members before the transfer can be registered; and
if the by-laws require a member to hold more than one share, the
transferee must acquire by the transfer, or by the transfer and
allotment, the number so required to be held before the transfer can
be registered.

(2) A transfer of shares shall be effected in such form as the
Registrar determines.

(3) No transfer of a share shall be valid and effective unless and
until such transfer has been registered by the Secretary on the
direction of the Board.

(4) No transfer of a share shall be registered if made by amember
indebted to the registered society without the written permission of
the Board, and until the transfer of a share is registered by the
transferee, nor shall any claim of the society upon the transferor be
affected thereby.

%. (1) Where a member or person claiming through a regis- Trader of sha of
tered society has become of unsoundmindor -g a member of
hls affairs and no committee, receiver or guardian has been unsound mind.
appointed, the society may subject to this section and section 93
transfer the share or interest of such member to any person
nominated by such member for the purposes of section 100 or may
pay to the person nominated a sum representing the value of the
share or interest of such member ascertained in accordance with
subx.g:tiox ((5).

(2) Subject to subsection (3), if no nominee has been appointed,
the society may pay a sum representing the vdue of the member's
share or interest to the Registrar of the Supreme Court.

(3) If the value of the share or interest does not exceed one
hundred dollars the Board may, subject to any conditions it thinks
fit pay the whole or any portion of such sum to the person who
appears to have the care of such member or the management of his
affairs.

(4) All transfers and payments made by a registered society in
~ccoi ibce with this section shall be validand effective against any
demand ma& upon the society by any person.

(5) For the purposes of this section and section 94. the value of
any s h e or interest shall be represented by the sum actually paid

ANTIGUA
AND

BARBUDA

Transfer of share
or interest on death
of member.

Restriction on
transfer of shares.

Conditions for
the validity of

transfer of shares.

54 The Co-opera five Societies Act 1997. No. 2 of 1997.

forthat share orinterestbythememberholdmg itunlesstheby-laws
of the society otherwise provide; and where the benefits group
insurance have accrued on such share or interest, the value of such
benefits shall be the amount actually received by the society on the
account received by the society on the account of such deceased
member.

97. (1) Where a person has been nominated as beneficiary by a
member in accordance with the by-laws of a society and such
nominee is admitted tomembership in the society, the society shall
withinone year of the death of themember by whom thenomination
was made, transfer the shares or interest of such deceased member
to the limit specifled in subsection (2) to the nominee.

&) Where no such nominee is admitted to membership in the
society or where the deceased member made no such nomination
the society shall withtn one year of the death of such deceased
member pay to the nominee or legal person representative of the
deceased member as the case may be, such sum, not exceeding the
said limit, representing the value or part thereof of the deceased
member's share or interest in the society.

(3) Nothing in this section shall be construed as prohibiting a
nominee who has been admitted to membership from electing to
receive payment representing the value of the deceased member's
shares or interest instead of accepting a transfer.

98. (1) Subject to this section, the transfer of the shares or
interest of a member or deceased member in the capital or a society
shall be subject to such conditions as may be prescribed by or under
this Act.

(2) No shares or interest or any part thereof in the capital of a
society may be transferred unless the transfer is made to a member
thereof or to a person whose application for membership has been
accepted.

99. (1) Subject to the by -laws, no transfer of shares in a society
is valid for any purpose unless

(a) a written application for membership by the transferee
is approved and the transfer is authorised by

(i) a resolution of the directors; or

No. 2 of 1997. Tfie Co-operative Societies Act 1997. 55

(ii) a person authorised by aresolution of the direc-
tors t approve applications and transfers of that
kind, and

(b) notification of any approval given pursuant to para-
graph(a) is sent tothe transferee andhisname has been
entered on the register of members.

(2) Notwithstanding subsection (l), a transfer of a share is valid
for the purpose of evidencing the rights of the parties to the transfer
between the transferor and the transferee.

100. (1) Subject to subsection (2), a member of a society may,
by instrument in writing signed by such member in the presence of
two attesting witnesses and delivered at or sent to the registered
office of the society during the hfetime of such member or ma& in
any book kept at the registered office, nominate any person to or
among whom there shall be transfed at his death such property
in the society of which he is the owner at the time of his death, or
as may have accrued thereon, whether in shares, loans or &posits,
or so much thereof as is specified in such nomination if the
nomination does not comprise the whole.

(2) Amemberof the society may nominakmore than one person
only if he holds more than one share.

(3) A nomination made pursuant to subsection (1) may be
revoked or varied by a subsequent nomination signed, attested a ~ d
dei~ve~ed or sent or made as aforesaid, or by any similar document
in the name of a revocation or variation signed by the nominator
in the presence of two attesting witnesses and &lived, sent or
made as aforesaid; but any such nomisation m y n ~ t be revoked or
varied by the will of the nominator or bj an1 codicil krcto.

(4) All nominations and all revocations or vaaiaeions there6
delivered or sent to a society shall be recorded in a book kept at the
registered office of the society.

PART VI

BUSINESS OF SOCIETY

101. (1) A registered society which has as one of its objects the
marlceting of any article of produce obtained by the work or

ANTIGUA
AND

BARBUDA

Power of
nomination.

Marketing of
produce through
the society.

ANTIGUA 56 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

industry of its members may by its by-laws or otherwise, contract
with its members

(a) that every such member who produces any such article
shall market the whole or any specified amount,
portion or description thereof toor through the society;

(b) that any member who is proved or adjudged to have
contravened the by-laws or to have acted in breach of
the contract shall pay to the society liquidateddamages
in a sum ascertained or assessed in such a manner as
may be prescribed in the by-laws.

(2) A contract entered into under this section shall not be
questioned in any court on the ground only that it is a contract in
restraint of trade.

aeationofdarge 102. (1) A person to whom money has been lent by a society or
in favour of the
society. who is otherwise indebted to the society may be required to create

acharge in favour of the society in such form as may be prescribed
in the regulations.

(2) A charge shall so long as it continues in force confer on the
society the following rights andimpose on the society the following
obligations, that is to say -

(a) the right upon the happening of any event specified in
the charge as being an event a u t h d i g the chargee
to seize the property subject to the charge and take
possession of any such property so subject;

(b) after an interval of five clear days or such less time as
may be specified in the charge from the date of taking
possession of any property subject to the charge, to sell
such property either by auction or if the charge so
provides by private treaty, either for a lump sum or
payment by installments;

(c) to apply the proceeds of sale in or towards discharge of
the debt secured by the charge and the costs of seizure
and sale and to pay any surplus of such proceeds to the
member whose property was sold.

No. 2 of 1997. The Co-operative Societies Act 1997. 57 ANTIGUA
AND

BARBUDA

(3) Acharge shall, so long as it continues in force, impose on the
member the obligation to pay to the society towards the discharge
of his indebtedness the proceeds of sale of any property comprised
the charge or any money received under any policy of insurance or
by way of compensation in respect of any such property, except in
so far as the charge otherwise allows.

(4) For the avoidance of doubt, it is hereby declared that a charge
under this section is not abill of sale within the meaning of the Bill
of Sale Act.

103. (1) A charge created under section 102 shall be duly Execution and
executed if signed by the person in quintuplicate in the presence registration of
of charge.

(a) the chairman or president of the society; and

(b) the secretary of the society.

(2) The secretary shall

(a) file one copy of the charge at the registered office of the
society and deliver one copy each to the Registrar of the
Supreme Court, the Registrar of Co-operative Societ-
ies and the National League or National Council; and

(6) deliver one copy to the member

(3) The Registrar of the Supreme Court shall keep abook known
as the "Co-operative Societies Charges Book" in which he shall
register every charge delivered to him by the secretary of a society,
and issue to the society a certified copy of the registration.

(4) The registration of a charge under subsection (3) shall
constituteafirstchargeand security in favourof the society andshall
be deemedtoaffectwith noticeany person dealing with the property
comprised in the charge.

(5) Where a loan or other indebtedness in respect of which
a charge was created is discharged, the secretary of the society
shall -

(a) cause a document to that effect to be prepared in
quintuplicate, and signed by the chairman or president

ANTIGUA 58 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

and secretary of the society indicating that the charge
has been discharged; and

(b) file one copy of such document, deliver one copy each
to the Registrar of Co-operative Societies, the National
League or National Council and the Registrar of the
Supreme Court who shall forthwith make an entry of
satisfadon in the Co-operative Societies Charges
Book; and

(c) &liver one copy to the member.

(4) Any person may, on payment of the fee prescribed in the
regulations, inspect the Registered Societies Charge Book and take
extracts therefrom.

(7) Notwithstanding anything contained in this section, every
charge subsisting at the commencement of this Act in favour of a
registered society shall be deemed to be registered in the Co-
operative Societies Charges Book, and any such charge shall,
without prejudice to anything contained therein, have the same
force and effect on a charge created under this Act.

claims unaffected 104, Nothing in section 102 shall affect -
by charge.

(a) any claim of the Government in respect of taxes or
money recoverable as such or of a landlord in respect
of rent or money recoverable as rent; or

(b) the rights of any prior charges or encumbrancer.

Prior claims
in favour of
society.

105. (1) Subject to any claim in respect of debt due to the
Crown or to a landlord in respect of rent or any money recover-
able as rent, any &bt or outstanding demand owing to a registered
society by a member or past member shall, notwithstanding
anything contained in section 103, be a first charge -

(a) upon the crops or other agricultural produce whether
standing or severed, raised in whole or in part with the
loan from the society by such member orpast member;
and

(b) upon any cattle, fodder for cattle, agricultural or
industrial machinery or implements, or raw materids

No. 2 of 1997. The Co-operative Societies Act 1997. 59

for use in manufacture or handicraft, or building used
for the purpose of agriculture or industry, fishing or
fish processing equipment to or purchased by such
member or past member in goods or money granted
him by the society.

(2) Any person dealing with any of the property specified in
subsection (1) shall be deemed to have notice of such first charge
and all such dealing shall be subject to the charge and priority
created by this Act.

106. (1) A society may enforce a charge by applying to the
Magistrate of the District in which the member resides or carried
on business or where the property subject to the charges is situate
for a warrant of &stress by certifying under seal to the Magistrate
the amount due and particulars of the property so charged and the
Magistrate shall issue a warrant of &stress and may offer the sale
of the property by public auction or private treaty.

(2) Notwithstanding anything contained in any other statute, a
Magistrate shall have jurisdiction under subsection (12) even
though the amount due exceeds the monetary limit of aMagistrate.

107. (1) A society may borrow from any other society or from
any bank approved by the Registrar on the security of any charge
executed and registered in accordance with section 103 and may
for this purpose assign any such charge to the other society or bank.

(2) An assignment of a charge under this section shall be
registered in the same manner as a charge and section 103 shall
apply, mutatis mutandis, to an assignment so registered.

(3) An assignment of a charge when registered shall operate as
a first charge in favour of the assignee subject to section 104.

(4) Where any charge is assigned to a registered society estab-
lished with the object of facilitating the operation of other societies,
such society may borrow from any bank approved by the registrar
and for this purpose may re-assign any such charge to such bank and
subsections (2) and (3) shall apply, mutatis mutandis, to such re-
assignment.

108. (1) A registered society may require a member or officer to
give a bond with or without sureties as additional security for the

ANTIGUA
AND

BARBUDA

Enforcement
of charge.

Assignment
of charge.

Bond as additional
security for loan.

ANTIGUA
AND

BARBUDA

Lien on shares.

Deductions applied
to loans and shares.

Puhchase of
shares.

60 The Co-operative Societies Act 1997. No. 2 of 1997.

repayment of any loan and condition thereby imposed on the
member or officer relating to the payment of capital and interest
shall be strictly observed and performed and on breach of any such
condition the bond shall be forfeited forthwith.

(2) Section 107 relating to the assignment of charges shall apply
mutatis mutandis to the assignment of bonds.

109. (1) A registered society has alien on ashare or any amount
outstanding to the credit of amember or his legal representative for
a debt due by that member to the society.

(2) A registered society may enforce a lien mentioned in
subsection (1) in the manner set out in its by-laws.

(3) The Board may, in default of payment by any member
indebted to a registered society, apply the sum paid up for the time
being on any shares heldby that member in or towards thedischarge
of the debt so due and of any expenses in or about the same, and the
defaulting member shall cease to have any further clam in respect
of such shares.

110. The by-laws of a society may provide that the society

(a) deduct an amount from the moneys it receives for the
goods, products or services it has marketed, handled,
ordealtin, for or onbehalf of amember of non-member
patron, and

(b) apply the amount prescribed in paragraph (a) as a loan
or to the purchase of shares on such terms as the Board
determines.

111. (1) Subject to this section, a society may purchase or
otherwise acquire any of its shares that

(a) are available for compulso~y purchase pursuant to
section 113; or

(b) are offered for sale.

(2) Subject to subsection (4), a society shall pay in cash, within
one year of the date of purchase, for any shares purchased pursuant
to subsection (1).

No. 2 of 1997. The Co-operative Societies Act 1997. 61 ANTIGUA
AND

BARBUDA

(3) Subject to subsection (4), a society shall pay a purchase price
for a share purchased pursuant to this section equal to the par value
of the share together with any dividends declared but unpaid with
respect to the share.

(4) Subject to subsection (5), where a society purchases or
otherwise acquires shares issued by it, those shares are deemed to
be cancelled.

(5) asociety limit thenumber of shares, any
shares of the society purchased or otherwise acquired by the society
may be treated as unissued shares.

112. (1) Notwithstandmg section 11 1, no society shall purchase Prohibition on
or otherwise acquire its shares where purchase shares.

(a) it is insolvent,

(b) the proposed purchase or acquisition would render it
insolvent; or

(c) subject to subsection (2), the proposed purchase or
acquisition would, in the opinion of the Board, be
detrimental to the financial stability of the society.

(2) Subject to subsection (3), where a purchase or other acqui-
sition of shares pursuant to section 1 11 or 11 3, would in the opinion
of the Board, impair the financial stability of the society or would
tk contrary to the interest of the remaining members the Board may
suspend the purchasing or acquisition of shares.

(3) The Board may not suspend the purchase of shares pursuant
-to subsection (2) for a period longer than one year unless the
suspension is approved,

(a) by a Registrar; or

(b) by a special resolution of the members.

113. Where Compulsory
sale of shares.

(a) winding-up proceedings have commenced with re-
spect to abody corporate that is amember of asociety,
or

ANTIGUA 62 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) amember of asociety has, during aperiodof two years,
failed to transact any business with the society,

the society may, by written notice to the member, require him to sell
his shares to the society.

PART VII

PROPERTY AND FUNDS OF SOCIETY

Investment of
funds.

114. (1) A society may invest or deposit its funds

(a) in any registered society or bank approved by the
Registrar;

(b) in any securities issued or guaranteed by the Govern-
ment:

(c) in the shares or on the security of any society with
hited liability; or

(d) in any other manner permitted by the Registrar.

(2) Except with the approval of the general membership and of
the Registrar, a society may not invest its funds for the purpose of
a mortgage or real property.

Loan by society. 115. (1) A society may give loans, guarantees, advances and
other forms of financial assistance to its members.

(2) Except for a loan to another society, no loan may be made to
a person who is not a member of that society.

(3) No loan may bemade toamember of theBoardorto an officer
of a society of a sum in excess of the value of his shares, deposits and
accumulateddivi&ndandinterest thereon unless adequate security
is provided for the amount of the loan in excess of the value of his
shares, &posits and accumulated dividends and interest thereon.

(4) No officer of a society shall be present at or participate in a
meeting when his application for a loan is being considered.

(5) A loan made in contravention of subsection (4) is void and
shall be repaid to the society immediately.

No. 2 of 1997. The Co-operative Societies Act 1997. 63 ANTIGUA
AND

BARBUDA

116. (1) Subject to this Act, no society and no member society Prohibited
shall, directly or indirectly, give a loan, guarantee or other means lorn.
of financial assistance,

(a) toamember, director, officer or employee of the society
or member society or an associate of any such person
for any purpose; or

(b) to any person for the purpose of or in connection with,
the acquisition of membership of the society or the
purchase of a share issued or to be issued by the society
or member,

where there are reasonable grounds to believe that the society is
insolvent or would, after giving the financial assistance, be insol-
vent.

117. (1) Subjecttothe provisions of any by-law of a societymade Receipt of loans and
for the purpose, a society may receive deposits and loans from
persons who are not members of the society for the purpose of the
meeting of any obligation or discharging any of its functions under
this Act.

(2) A society may by mortgage or in any other manner it deems
appropte, guarantee the repayment of any sums received by it
pursuant to subsection (1).

118. (1) A society may receive deposits from aminor and pay to Receipt of dep i t s
such minor such deposit together with the interest accrued thereon. minors.

(2) Any deposit made on behalf of a minor may, together with
any interest accrued thereon, be paid to the parent of the minor or,
where the minor is under the case of a guardian, to such guardian
for the use of the minor.

(3) For the purposes of this section the mother of a minor born
out of wedlock is the guardian of such minor, except

(a) there is subsisting a court order depriving her of the
custody of suchminor, in which case the guardian shall
be the person named in the court order; or

ANTIGUA 64 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) the minor customarily resides with some person other
than the mother in which case that person shall be
guardian.

(4) In paragraph (b)of subsection (3) "customarily resides with
includes "is under the care of '.

(5) The receipt of a minor or his parent or guardian, as the case
may be, for money received under this section shall be a good and
sufficient discharge of the liability of the society in respect of that
money.

(6) Where aperson under a legal disability, other than minority,
is entitled to receive money from a society such money may be paid
by the society to the Registrar of the Supreme Court to the credit of
such person under such disability; and the receipt of the Registrar
of the Supreme Court or of the person under disability, as the case,
may be, shall be good and sufficient discharge of the liability of the
society to pay that money.

(7) The Registrar of the Supreme Court may retain out of
any money so paid to him a sum not exceeding one per cent
thereof for fees of office and shall pay or apply the remainder
to or for the care, maintenance, education or benefit or such
person under disability.

Reserve Fund 119. (1) Where a society realises a surplus from its transactions
liquidity and that society shall establish and maintain reserve, a Reserve Fund
adequacy of
capital.

which shall be administered by the National League or National
Council in such manner as maybe prescribed.

(2) Where the annual audit of a society indicates a net surplus,
at least 25% of that surplus, shall be credited to the Reserve Fund;
and such reserve fund may, subject to the approval of the Registrar,
be used in the business of the society, including unforeseen losses,
unexpected shortfalls in liquid cash, capital retention, repair and
maintenance and the avoidance of external borrowing.

(3) Every society shall ensure

(a) that no less than 20% of its members' shares and
deposits are kept in a liquidity reserve, and

No. 2 of 1997. The Co-operative Societies Act 1997. 65 ANTIGUA
AND

BARBUDA

(b) that its statutory and other reserves are, at no stage, less
than 20% of its total liabilities.

(4) The Registrar shall, on the application of a society or on his
own account, grant a period of time as considered reasonable to
enable management to make good any deficiency in the adequacy
of its capital base.

(5) Subsections (1) and (3) apply to credit unions only.

120. (1) Every society shall establish and maintain a Develop- Development Fund.
ment Fund.

(2) Every registered society that realises a surplus from its
operations as ascertained by the annual audit shall make such
annual contribution as may be determined by the National League
or National Council not exceeding ten per cent of that surplus of
such fund to be used for the development of registered societies.

(3) subject to subsection (4), the Development Fund shall be
administered by the National League or National Council in such
manner as may be prescribed.

(4) Where a Natio~d League or Natiofial Council has not been
esrablished or is not functioning as such, the Development Fund
shall be administered by such person or body of persons as the
Regism determines.

(5) The Development Fund shall be administered by the Na-
tional League or National Council in such a manner as may be
prescribed.

121. (1) A society may establish acontributory PensionFund for Pension Fund.
its servants and employees and may contribute to such fund.

(2) A Pension Fund established under subsection (1 ) shall not be
considered part of the assets of the society but may be invested in
such manner as may be prescribed by the by-laws.

122. After making the prescribed payments to its Reserve and Charitable
Development Fund a society may, with the approval of the Regis- contributions
trar, conmbute to any non-profit, charitable, benevolent or cultural
P w = .

ANTIGUA 66 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

Dividend or 123. (1) Subject to this section and sections 119 and 120, any
bonus. surplus may be disuibuted by way of dividend or bonus amongst its

members in proportion to their patronage with the society at such
rate as may be prescribed.

(2) No registered society shall

(a) pay a dividend or bonus or distribute any part of its
accumulated funds before the balance sheet has been
certified by an auditor approved or appointed by the
Regism; or

(b) pay a dividend or make any payment on account out of
profits until the Reserve Fund has reached aproportion
ofnot less than 10% of the totalliabilitiesof the society.

(3) A bonus based on wages or on the value of the products of a
member or a bonus or rebate patronage calculated in proportion to
the amount of the business done by each member with the registered
society may be disuibuted periodically to themembers from surplus
funds after the deduction of all expenditure and after making
provision for bad and doubtful debts, making allocation for the
reserve Fund.

PART VIII

FINANCIAL DISCLOSURE AND AUDIT

Annual financial 124. (1) The directors of a society mustplace before themembers
statements. at every annual meeting of members of the society:

(a) comparative financial statements, as prescribed, relat-
ing separately to

(i) the period that began on the date the society
came into existence and ended not more than
twelve months after that date, or, if the society
has completed a financial year, the period that
began immediately after the end of the last
period for which financial statement were pre-
pared and ended not more than twelve months
after the beginning of that period, and

(ii) the immediately preceding financial year;

No. 2 of 1997. The Co-operative Societies Act 1997. 67 ANTIGUA
AND

BARBUDA

(b) the report of the auditor; and

(c) any further information respecting the financial posi-
tion of the society and the results of its operations
required by the by-laws.

(2) The financial statements mentioned in sub-paragraph
(ii) of paragraph (a) of subsection (1) may be omitted if the
reason for the omission is set out in the financial statement to
be placed before the members or in a note attached thereto.

125. (1) The directors of a society must approve the financial Approval of
statements referred to in section 124, and the approval must be financial
evidenced by the signature of two or more directors. statements

(2) A society shall not issue, publish or circulate copies of the
financial statements referred to in section 124 unless the financial
statements are

(a) approved and signed in accordance with subsection
(11, and

(b) accompanied by a report of the auditor, if any, of the
society.

126. (1) Not less than ten days before each annual meeting of Furnishing
members, a society must make available to each member a copy of financial
the financial statements and report of the auditor referred to in
section 124.

(2) Where asociety applies totheRegistrarand he is satisfied that
there are reasonable grounds, he may excuse the society from
complying with subsection (1).

127. (1) Subject to section 128, only individuals who qualify Auditor's
under subsection (2) are qualified for appointment as auditors of a qualifications.
society.

(2) An individual qualifies for appointment as auditor, if

(a) he is a member of the Institute of Chartered Accoun-
tants of Antiguaand Barbuda in this section called the
"Institute", and holds a practising certificate of the
Institute, or

ANTIGUA 68 The Co-opera five Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) he satisfies the Registrar that he was in practice in
Antigua and Barbuda as an auditor of societies on the
day immediately pr-ng the commencement of this
Act.

(3) Notwithstanding subsections (1) and (2), the Registrar may,
in any spec& case, audit the accounts, or appoint any person
whether or not quaWA in accordance with subsection (2) to audit
the accounts, of any registered society.

Disqualifying
auditor.

128. (1) Subject to subsection (7), an individual is not qdified
to be an auditor of a society if he is not independent of the society
and its member societies, and of the directors and officers of the
society and its member societies.

(2) For the purposes of this section whether or not an individual
is independent is aquestion of fact to be determined having regard
to all the circumstances.

(3) An individual is presumed not to be independent of a society
if he or his business partner

(a) is amember, adirector, an officer or an employeeof the
society or any of its member societies or a business
partner or employee of any director, officer, member of
employee of any such society, or its member societies;

(6) is a member of a Credit Committee or any other com-
mittee of the society or any of its member societies; or

(c) transacts a substantial amount of business with the
society or a member society thereof.

(4) The provisions of professional advice by or on behalf of an
individual or his business partner does not by itself deprive an
individual or his business partner of his independence for the
purposes of this section.

(5) An auditor who becomes disqualified under this section
aust, subject to subsection (3, resign forthwith after he becomes
aware of his disqualification.

(6) Amember of a society may apply to the Registrar for an order
or the Registrar may, upon hisown motion, m.&e an order declaring

No. 2 of 1997. The Co-operative Societies Act 1997. 69 ANTIGUA
AND

BARBUDA

an auditor disqualified under this seclion and the office of auditor
vacant.

(7) A member of a society may apply to the Registrar for an
order or the Registrar may, upon his own motion, make an order
exempting an auditor from disqualification under this section;
and the Registrar may, if he is satisfied that an exemption would
not adversely affect the members, exempt the auditor on such
terms as he thinks fit.

129. (1) Subject to subsection (4), the members of a society shall Appointment of
auditor.

(a) at the first general meeting, appoint an auditor to hold
office until the close of the first annual general meet-
ing, and

(b) at each annual meeting, appoint an auditor to hold
office until the close of the next annual general meet-
ing.

(2) Notwithstanding subsection (10 (b), if an auditor is not
appointed at an annual meeting, the incumbent auditor continues
in office until his successor is appointed at a subsequent meeting.

(3) The remuneration of an airditor shall be fixed by the directors.

(4) An auditorshall bedeemednotto have assumedoffice unless
he has, in writing to the society, confirmed his willingness to serve
as auditor.

130. (1) An auditor of a society ceases to hold office when of dfice,

(a) he dies or resigns, or

(6) he is removed pursuant to section 13 1.

(2) The resignation of an auditor becomes effective at the time
a written resignalion is sent to the society, or at t l ~ time specified
in the resignation, whichever is the later date.

131. (1) The members of a society may, by ordinary resolution Removal of
at a special meeting remove an auditor other than an auditor auditor.
appointed by the Registrar under section 133.

ANTIGUA
AND

BARBUDA

Filling vacancy
of auditor.

Registrar appointed
auditor.

Auditor's
right to notice.

Required
notice.

70 The Co-operative Societies Act 1997. No. 2 of 1997.

132. (1) Subject to subsection (4), the directors must forthwith
fill a vacancy in the office of auditor.

(2) If there is notaquorum ofdirectors, the directors then in office
must, within twenty-one days after the vacancy in the office of
auditoroccurs, call a specialmeeting of members to fill the vacancy;
and if they fail to call a meeting, or if there are no directors, the
meeting may be called by any member.

(3) Where the directors fail to call a meeting pursuant to
subsection (2) or where there are no directors, a meeting for the
purpose of f~lling avacancy in the office of auditor may be called by
any member.

(4) The by-laws of a society may provide that a vacancy in the
office of auditor be filled only by vote of the members.

(5) An auditor appointed to fill vacancy holds office for the
linexplred term of his predecessor.

133. If a society does not have an auditor, the Registrar may,
upon his own motion, and shall, upon the application of amember,
appoint and fix the remuneration of an auditor, and the auditor holds
office until an auditor is appointed in accordance with section 129.

134. The auditor of a society is entitled to receive notice of every
meeting of the members of the society, and at the expense of the
society, to attend and be heard at the meeting on matters relating tg
his duties as auditor.

135. If amember of a society who is entitled to vote at a meeting
of members, or a director of a society gives written nolice to the
auditor or a former auditor of the society, not less than ten days
before a meeting of members of the society, to attend the meeting,
the auditor or former auditor, as the case may be, shall attend the
meeting at the expense of the society and answer questions relating
to his duties as an auditor or former auditor.

Auditor's right to
comment.

136. (1) An auditor who

(a) resigns,

No. 2 of 1997. The Co-operative Societies Aci 1997. 7 1 ANTIGUA
AND

BARBUDA

(b) receives a notice or otherwise learns of a meeting of
members called for the purpose of removing him from
office,

(c) receives a notice or otherwise learns of a meeting of
members or directors at which another person is to be
appointed to fill the office of auditor, whether because
of the resignation or removal of the incumbent auditor
or because his term of offise has expired or is about to
expire,

may submit to the society a written statement giving the reason for
his resignation or the reasons why he opposes any proposed action.

(2) Whenitreceives astatementreferred to in subsection (I), the
society must forthwith sendacopy of the statement to every member
entitled to receive notice of any meeting of members and to the
Registrar.

(3) No individual may accept appointment, consent to be
appointed or be appointed as auditor of a society if he is replacing
an auditor who has resigned, been removed or whose term of office
has expired or is about to expire, until the individual has requested
or received from the former zuditor a written statement of the
circumstances and reasons why, in the auditor's opinion, he is to be
replaced.

(3) Notwithstanding subsection (3), an individual otherwise
qualified may accept appointment or consent to be appointed as
auditor of a society if, within fifteen days of making the request
referred to in that subsection, he does not rccelve a reply to it.

137. An auditor of a society shall make the examinatio~ hat is T:?. ..a:rinat!on hj
in his opinion necessary to enable him to report in the prescribed " d i ' ~
manner on the financial statements required by this Act to be placed
before the members, except such financial statements or parts
thereof that relate to the immediately preceding financial year
referred to in subparagraph (ii) of paragraph (a) of subsection (1)
of section 124.

138. (1) Upon the demand of an auditor of a society the present Audltor's nght to
or former directors, officers, employees or agents of the society shall lnsprct.
furnish to the auditor

ANTIGUA 72 The Co-operalive Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) such information and explanations, and

(b) such access to records, documents, books, accounts
and vouchers of the society,

as are in the opinion of the auditor, necessary to enable him to make
the examination and report required under section 137 and that the
directors, officers, employees or agents are reasonably able to
furnish.

(2) Upon the demand of the auditor of a society, the d i i tors of
the society must

(a) obtain from the present or former directors, officers,
employees or agents of any member of the society that
is a registered society, the information and explana-
tions that the hectors, officers, employees and agents
are reasonably able to furnish and that are, in the
opinion of theauditor, necessary to enable him to make
h e exmination and report required under section
137; and

(b) furnish the information and explanations so obtained
to the auditor.

(3) Where a former director, officer, employee or agent of a
member fails to comply with subsection (2), he isguilty of an offence
and is liable on summary conviction to a fine of $500 md to
imprisonment for three months or both and to a further fine of $50
for every day he fails to comply with that subsection after a
conviction is first obtained.

EITOI or 139. (1) A director or an officer of a society shall forthwith
misstatement. notify the society's auditor of any error or misstatement of

which the director or officer becomes aware in a financial
statement that the auditor or former auditor has reported upon.

(2) When the auditor or a former auditor of a society is notified
or becomes aware of an error or mis-statement in a financial
statement upon which he has reported to the society and in his
opinion, the error or misstatement is material, he shall inform each
hector of the society accordingly.

No. 2 of 1997. The Co-operative Societies Act 1997. 73 ANTIGUA
AND

BARBUDA

(3) When under subsection (2) the auditor or a former auditor of
a society informs the directors of an error or misstatement in a
financial statement of the society, the directors shall

(a) prepare and issue revised financial statements, or

(b) otherwise inform the members and the Registrar of the
error or misstatement.

140. An auditor is not liable to any person in an action for Privilege of auditor.
&famation based on any act done or not done, or any statement
ma& by him in good faith in connection with any matter he is
authorised or required to do under this Act.

141. (1) Within thirty days, orsuchlongerperiodastheRegistrar Annual and special
allows, of the date of its annual meeting a society shall returns.

(a) file with the Registrar an annual return for the previous
year, on the form provided by the Registrar, and

(b) furnish the Registrar with a copy of the financial
statement placed before its members at its last annual
meeting.

(2) Within thirty days, or such longer period as the Registrar
allows, of the date of its reporting period at the end of each month
every society shall file a monthly return with the Registrar.

(3) The Registrar may, by notice in writing, require a society,
director or officer of a society to make a special return on any subject
connected with the business and affairs of the society and, when he
requests a special return, he shall speclfy in the notice a time within
which the special return is to be ma&.

PART M

RECONSTRUCI'ION OF SOCIETIES

142. (1) The reconstruction of a registered society may be Methods of
effected by any of the following methods: reconstruction

(a) the amalgamation of one society with another society
to form a single society;

ANTIGUA 74 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARSUDA

(b) the transfer of the assets and liabilities of one society to
another society; or

(c) the division of a society into two or more societies.

(2) Sections 145 to 148 shall have effect with respect to the
procedure that must be followed in relation to paragraphs (a) to (c)
of subsection (1).

Conversion. 143. (1) A company registered under the Companies Act or a
registered industrial, provident or friendly society may, by specla1
resolution, determine to convert itself into a registered society.

(2) Any such resolution for conversion into a registered society
shall appoint ten persons, members of a company, industrial,
provident or friendly society, as the case may be, who together with
the secretary, shall sign the rules and who may, by resolution, be
given such powers to act on behalf of the company, industrial,
provident or friendly society, as may be specified in such resolution.

(3) A copy of the special resolution referred to in subsection (1)
with three copies of the by-laws shall be sent to the Registrar who
may, upon receipt thereof, register the society and issue acertificate
in accordance with section 13.

meet of ceaificate 144. On the date shown in the certificateofregistration issued
of registration. pursuant to section 243,

(a) the incorporation or registration under any other
enactment of the company, industrial, provident or
friendly society, as the casemay be, ceasesand shall be
cancelled by the proper officer;

(b) the conversion of the company, industrial, provident or
friendly society, as the case may be, is effective;

(c) the property of any body mentioned in paragraph (a)
becomes the property of the registered society;

(4 the registered society is liable for the obligations of the
company, industrial, provident or friendly society, as
the case may be;

NO. 2 of 1997. The Co-operative Societies Act 1997. 75 ANTIGUA
AND

BARBUDA

(e) an existing cause of action, claim or liability or pros-
ecution against the company, industrial or provident
society or for friendly society is not affected;

fl a civil, criminal or administrative action pending
against a converted company, industrial or provident
society or friendly society may becontinuedagainst the
registered society; and

(g) a conviction against or aruling, order or judgement in
favour of or against a body mentioned in paragraph (e)
may be enforced by or against the registered society.

(2) Every right or claim and the liability for every penalty
mentioned in subsection (1) have priority as against the property of
the registered society over all other rights or claims against, or
liabilities of the registered society.

145. (1) Any two or more societies may, by a resolution passed Amalgamation
by not less than three fourths of all the members of each society of societies.
present and voting at a special general meeting called for the
purpose, amalgamate as one society.

(2) Where the resolution referred to in subsection (1) is passed,
each such society shall apply to the Registrar for cancellation of its
registration and the societies shall jointly make application for the
registration of the amalgamated society.

(3) The registration of the amalgamated society shall be deemed
to be sufficient to vest the assets and liabilities of the amalgamating
societies in the amalgamated society.

146. (1) Any society may, by resolution passed by not less than Transfer of assets of
three-fourths of all the members present and voting at a special societies.
general meeting called for the purpose, agree to transfer its assets
and liabilities to any other society which has agreed to accept them.

(2) The acceptance of that other society shall be evidenced by a
resolution passed by not less than three fourths of the members of
that other society present and voting at a special general meeting
called for the purpose.

(3) On the passing of the resolutions referred to in subsections
(1) and (2), the msferor society shall apply to the Registrar for

ANTIGUA 76 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

cancellation of its registration and the transferee society shall
submit to the Registrar a copy of its resolution agreeing to the
transfer.

(4) Subject to subsection (5), thecancellation of registration and
the submission of the resolution agreeing to accept the transfer is
hereby deemed to be sufficient to vest the assets and liabilities of the
transferor in the tranferee.

(5) Where the vesting of the assets of a society involves real
property, acopy of theresolution referred in subsection (I), certified
as such by the Registrar, the resolution shall be recorded at the
Registration Office, the Land Registry or such other government
department in which dealings in real property are recorded or
registered, as the case may be.

Of Objecting 147. Notwithstanding sections 145 and 146 no amalgamation
creditors. or transfer shall be effected unless the creditors of the societies

concemedare given three months written notice of the proposal and
have signified that they have no objections.

Division of society. 148. (1) Any society may, by resolution in this section referred
to as a "preliminary resolution" passed by three-fourths of the
members present and voting at a special general meeting called for
the purpose, resolve to divide itself into two or more societies.

(2) A preliminary resolution

(a) shall contain proposals for the division of theassets and
liabilities of the society among the new societies into
which it is proposed to divide the society; and

(b) may specify the area of operation of, and the members
who will constitute, each of the new societies.

(3) A copy of the preliminary resolution shall be sent to the
Registrar and all members and creditors of the society that is being
divided.

(4) 4 t least ten days notice of the preliminary resolution shall be
given to any person whose interesc will be affected by the division
of the society, and the notice shall be published at least once in the
Gazette and in a newspaper circulathg in Antigua and Barbuda.

No. 2 of 1997. The Co-operative Societies Act 1997. 77 ANTIGUA
AND

BARBUDA

(5) Any member of a society may, notwithstanding any by-law
to the contrary, by notice given to the society withina periodof three
months from his receipt of the preliminary resolution, state his
intention not to become a member of any of the new societies.

(6) Any crd tor of the society may, notwithstanding any
agreement to the contrary, by notice given to the society wibn a
period of three months from his receipt of the preliminary resoluk
tion, state his intention to demand the payment of moneys due him.

(7) Any person, other than amember or creditor, whose interest
may be affected by the &vision of a society may, by notice given to
the society, object to the division unless his claim is satisfied.

(8) After the explry of three months from the receipt of the
preliminary resolution by all the members and creditors of the
society and of the notice to other person given under subsection (4),
another special general meeting of the society, of whch at least
fifteen days notice shall be given to its members, shall be convened
for the consideration of the preliminary resolution.

(9) If at the special general meeting referred to in subsection (8)
the p r e W a r y resolution is confirmed by a special resolution
either without changes or with such changes as in the opinion of the
Registrar are not material, the Registrar may, subject to subsection
(1 1) and section 13, register the new societies; and upon registra-
tion, the original society shall be deemed to be dissolved and its
registration cancelled.

(10) The decision of the Regism as to whether any changes
made in the preliminary resolution are material shall be final and
not subject to any appeal.

(1 1) At the special general meeting referred to in subsections (8)
and (9) provision shall be ma& by another resolution for

(a) repayment of the share capital of d l the members who
have given notice under sub-section (5);

(b) satisfaction of the claims of all the creditors who have
given notice under subsection (6);

(c) satisfaction of the claims of such of the other persons
who have given notice under subsection (7);

ANTIGUA 78 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

but no member or creditor or other person shall be entitled to such
repayment or satisfaction until the preliminary resolution is con-
fmed in accordance with subsection (9).

(12) Where within such time as the Registrar considers reason-
able

(a) the share capital of the members referred to in subsec-
tion (1 1) (a) is not repaid,

(b) the clams of the creditors referred to in that subsection
are not satisfied, or

(c) the claimsof theother personsmentionedin subsection
(1 1) (c) are not satisfied or secured,

the Registrar may refuse to register the new societies.

Effect of 149. The registration of new societies established pursuant to
registration Of new section 148 is sufficient to vest the assets and liabilities of the
societies. original society in the manner specified in the preliminary

resolution as confirmed in accordance with subsections (8) and
(9) of that section.

PART X

RECEIVERS AND RECEIVER-MANAGERS

Receiver appointed 150. Where, in the opinion of the Registrar, based on the
by Registrar. results of an examination undertaken pursuant to section 180, it

is necessary to appoint a receiver-manager to protect the equity
of the members, the Registrar may, subject to the approval of the
Minister, appoint a receiver-manager.

Functions 151. (1) Subject to the rights of secured creditors, a receiver
of receiver. of any property of a society may

(a) receive the income from the property and pay the
liabilities connected with the property; and

(b) realise the security interest of thoseon whose behalf he
is appointed.

No. 2 of 1997. The Co-opera five Societies Act 1997. 79 ANTIGUA
AND

BARBUDA

(2) Notwithstanding subsection (1) and subject to any order that
the Court may make pursuant to section 155, a receiver who is not
appointed manager of a swiety shall not catry on the business of the
society.

152. Notwithstanding section 150, where a receiver of a Functions
society is also appointed manager of the society, he may carry on of receive'-
any business of the society to protect the security interest of those
on whose behalf he is appointed.

153. Where a receiver or receiver-manager is appointed by a cessation
Court or the Registrar or pursuant to an instrument, no directors of Board's
of the society shall exercise the directors' powers that the receiver
or receiver-manager is authorised to exercise until the receiver or
receiver-manager is discharged.

154. (1) A receiver or receiver-manager appointed by a Court Receiver's duty.
shall act in accordance with any directions of the Court.

(2) A receiver-manager appointed by the Registrar shall act in
accordance with any directions of the Registrar.

(3) A receiver or receiver-manager appointed pursuant to an
instrument shall act in accordance with that instrument and any
hection that the Court may make pursuant to section 155.

(4) A receiver or receiver-manager shall

(a) act honestly and in good faith, and

(b) deal with any property of the scciety in his possession
or control in a commercially reasonable manner.

155. Upon an application by a receiver-manager of a society, Directions by
whether appointed by the Court or under an instrument upon an
application by an interested person, including the Registrar, the
Court may make any order it thinks fit, on any matter including, an
order

(a) appointing, replacing or discharging a receiver or
receiver-manager and approving his accounts;

(b) determining the notice to be given to any person or
dispensing with notice to any person;

ANTIGUA 80 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(c) fixing the remuneration of the receiver or receiver-
manager;

(d) requiring the receiver or receiver-manager, or aperson
by or on behalf of whom he is appointed,

(i) to make good any default in connection with the
receiver's or receiver-manager's custody or
management of the property and business of the
society, and

(ii) to relieve a receiver or a receiver-manager, or a
person by or on behalf of whom a receiver or
receiver-manager is appointed from any default
on any terms that the court considers appropri-
ate;

(e) c o n f d n g any act of the receiver or receiver-man-
ager; and

Ct) giving directions on any other matter relating to the
duties of the receiver or receiver manager.

Directions by 156. (1) Whereareceiver-managerisappointed theRegistrar,
Registrar. the receiver-manager for any interested person may apply to the

Regism for directions on any matter relating to the duties of the
receiver or receiver-manager.

(2) Where the Registrar receives an application pursuant to
subsection (I), he may make any order he considers appropriate,
including any other similar to an order described in sections 155 (c)
to 0-

Required actions of 157. A receiver or receiver-manager shall
receiver.

(a) in the case of areceiver or receiver-manager appointed
by the Court or pursuant to an instrument, immediately
notify the Registrar of his appointment or discharge;

(b) take into his custody and control the property of the
society in accordance with the Court order, order of the
Registrar or instrument pursuant to which he is
appointed.

No. 2 of 1997. The Co-operative Societies Act 1997. 81 ANTIGUA
AND

BARBUDA

(c) open and maintain a bank account in his name as
receiver or receiver-manager of the society for the
moneys of the society coming under his control;

(d) keep detailedaccounts of all transactions carriedout by
him as receiver or receiver- manager;

(e) keep accounts of his administration that he shall cause
to be available during usual business hours for inspec-
tion by the directors of the society, the Regism or any
person authorised by the Registrar.

V) prepare at least once in every six-month period after the
date of his appointment financial statements of his
administration, as far as is practicable in the form
required in section 124;

(g) on completion of his duties, render a final account of
his administration in the form he has adopted for
preparation of interim accounts pursuant to paragraph
V); and

(h) file with theRegistrar acopy of any financial statement
mentioned in paragraph (n and any final account
mentioned in paragraph (g) within fifteen days of the
preparation of the financial statement or rendering of
the final account, as the case may be.

PART XI

DISSOLUTION

158. (1) Subject to the approval of the Registrar, the members of Dissolution by
a society may authorise the dissolution of the society. members.

(2) The Board shall cause a notice of a special meeting of
members to be sent in the manner prescribed in section 43 to each
member for the purpose of authorising dissolution.

(3) Each member of the society has the right to vote with respect
to dissolution.

(4) For the purpose of subsection (1) dissolution is authorised
when the members approved the dissolution by a special resolution
of the membership.

ANTIGUA 82 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(5) Where the Registrar

(a) receives notice, in a form satisfactory to him, of an
authorisation to dissolve a society; and

(b) is satisfied that it is in the best interest of the society and
its members:

he shall approve the dissolution.

(6) The authorisation approved pursuant to subsection (4) must
set out

(a) the assets and liabilities of the society;

(b,l the claims of any creditors;

(c) the number of members; and

(d) the nature and extent of the members' interest in the
society.

(7) Subject to subsection (9), where a society has an unallocated
surplus and the authorisation approved pursuant to subseclion (4)
states that it is not to be paid out at the time of the society's
dissolution, the unallocated surplus must be paid to one or more
trustees who are

(a) named in the special rcsolulion; or

(b) where not named in the special resolution, appo~nted
by the Registrar.

(8) The trustees named or appointed pursumt to wbection (7)
shall

(it) deposit the inoncy in a spccid tnlat accoum

(i) in a i~pi.qicred society, o r

(11) a batik registered under ~ h c B,inkuig Act. I V Y I ;

h i invcsl h c rniwcy 111 any inmzier iluthonsecl by law.

No. 2 of 1997. The Co-operative Societies Act 1997. 83 ANTIGUA
AND

BARBUDA

(9) Where a trust is created pursuant to subsection (7), the
income and principal of the trust is required to be expended within
aperiod of twenty years from the date that the trust was established
for any cooperative purpose the Registrar considers fit.

(10) In this section,

(a) "interest" includes the interest of amember in a smiety
and includesmember loans andobligations of any lund
that

(i) arise by virtue of the by-laws of the society, and

(ii) are owed by the society to the members;

(b) "unallocated surplus" includes any net proceeds from
the sale of assets on dissoludon of the society after the
liabilities of the society and the claims of creditors and
members have been satisfied.

159. (1) WhentheRegistrar approvesaspecial resolution passed N O ~ I C ~ of
pursuant lo section 158 he shall, at the expense of the society, cause ~ I S S O ~ U ' ~ " ~ by
a notice of the special resolution to be published once a week for
two weeks

, I in the Gazette, and

(b) in a newspapr circulating in Antigua and Barbuda.

(2) Notwithstanding subsection (1 ),where the Registrarreceives
an affidavit from the officers of a society stating that the society haa
no assets and no liabilities and he is satisfied that it is appropriarc,
he may

(a) exempt the society from subsection ( I ); and

(h) cause, at the expense of the Registrar, a notice of the
special resolution passed pursuant to section 1.58 ( 1 )to
be published in the &I,-rrru.

(3) The Registrar shall require fro111 :I society, liquidator or
trustee appointed by a society or any other perion who is required
to furnish information, an alnnual or other retun1 \llowing

ANTIGUA 84 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) the progress of dissolution;

(b) the distribution of any undistributed surplus orreserve;

(c) the progress of the administration of a trust established
in accordance with this section; and

(d) any other information that he may require.

Dissolution 168. (1) Where the Registrar has reasonable cause to believe
by Registrar. that a society

(a) hasnotcommendedbusiness within two years afterthe
date shown on its certificate of registration; or

b has not carried on business for two consecutive years,

he shall send to the secretary of the society aletter inquiring whether
the society is carrying on business, is in operation or is submitting
an annual return.

(2) Where the Registrar does not, within one month of the date
he sent a letter pursuant to subsection (I), receive an answer to the
letter, he shall, within fourteen days after the expiry of the month,
send to the secretary of the society a letter referring to the letter sent
pursuant to subsection (1) and stating that

(a) no answer to that letter has been received by him; and

(b) if an answer is not received to the letter sent pursuant
to this subsection within one month from the date it is
sent, anotice will be published in the Gazette to strike
the name of the society off the register and to dissolve
the society.

(3) Where the Registrar

(a) receives an answer kom a society that it is not carrying
on business or is not in operation or will not be
submitting an annual retm; or

(b) does not, within one month after the date that he sent
aletter pursuant to subsection (21, receivean answer to
that letter,

No. 2 of 1997. T k Co-operarive Societies Act 1997. 85 ANTIGUA
AND

BARBUDA

he may publish in the Gazette and send to the society a notice that,
at the expiry of one month from the date of that notice, the society
will, unless cause is shown to the contrary, be struckoff the register
and the society will be dissolved.

(4) At the expiry of the period mentioned in a notice sent
pursuant to subsection (3), the Registrar may, unless cause to the
contrary is peviously shown by the society

(a) where he is satisfied that the society has no assets or
liabities, issue a certificate of &ssolution in the
prescribed form; or

(b) appoint a liquidator to dissolve the society.

161. (1) Where a society fads to furtush a copy of the annual Dissolution for
fmancial statements to its members at an annual or special meeting failure account
called for that purpose or within a period of twelve months t e r the
close of its financial year, the Registrar

(a) mayrequire the&ectors to call aspecialmeeting of the
society for the purpose of considering the business
transacted during the pre

cedi

ng firacid year and for
the furnishing to the members md to the Registrar a
copy of the a m & financial statement; and

(&?) shall, where he requires a special meeting to be called
pursuant to paragraph (a), determine a time period
withm whch the special meeting 6s to be cdled.

(2) Where the directors fail t~ cdl a specid treethg within h e
time period set out in subsection (I), the Rcgistrx may d l i.+e
special meeting

(a) to review the f i c d position of the society and the
members' interests in the society; and

(b) the members fail to pass a resolution to the effect that
the society is to carry on business md to comply with
section 124 and 126;

(3) Where

(a) a quorum of members is not present at a special
meeting called pursuant to subsection (2); or

ANTIGUA 86 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) the members fail to pass a resolution to the effect that
the society is to cany on business and to comply with
section 124 and 126;

theRegistrar may notify the directors that, unless sections 124 and
126are complied with within onemonth from the date of the notice,
the society will be struck off the register and dissolved.

(4) Notwithstanding subsection (3), the Registrar may extend
the period for compliance with sections 124 and 126.

(5) Where a society does not comply with sections 124 and 126
within the periodmentionedin subsection (3) or set by the Registrar
pursuant to subsection (4) the Registrar may,

(a) where he is satisfied that the society has no assets or
liabilities, issue a certificate of dissolution in the
prescribed form; or

(b) appoint a liquidator to dissolve the society.

Dissolution by 162. (1) Tbe Registrar or an interested person may, after giving
Court. the society three months notice of the proposed application, apply

to the Court for an order dissolving a society, if the society

(a) obtained its registration by fraud or mistake;

(b) exists for an illegal purpose;

(c) has wilfully, after notice by the Registrar, violated any
of the provisions of this Act or its by-laws;

(d) is no longer operating on co-operative principles; or

(e) has the number of its members reduced below the
minimumnumber required by this Act for the society.

(2) Where an interested person applies pursuant to this section,
he shallgivetheRegistrarnotice of hisapplication and the Registrar
isentitledtoappear and be heard in person or by an attorney-at-law.

(3) Where the Court receives an application pursuant to this
section, it may order that the society be dissolved or liquidated and
dissolved under the supervision of the Registrar.

No. 2 of 1997. T k Co-operative Societies Act 1997. 87 ANTIGUA
AND

BARBUDA

(4) Where the Registrar receives an order made pursuant to
subsection (3), he shall,

(a) where the order is to dissolve the society, issue a
certificate of dissolution in the prescribed form; or

(b) where the order is to liquidate and dissolve the society
under the supervision of the Registrar, publish anotice
in the Gazette.

163. (1) Where a society has been dissolved pursuant to this Revival of
Part, any interested person may apply to the Registrar to have the dissolved society.
society revived by sending him an application for revival in the
prescribed form.

(2) Where the Registrar receives an application for revival
pursuant to subsection (1) and he is satisfied that the society is in
compliance with this Act, he may

(a) issue a certificate of revival in the prescribed fonn and
publish notice of the revival in the Gazette; and

(b) impose any condtions on the society that he considers
reasonable with respect to the society.

(3) A sxiety is revived on the date shown in the certificate of
revival.

(4) Where a society is revived pursuant tc! his section, it

(a) has all the rights and privileges, wd

(b) is liable for the obligations,

that it would have had if it had not been dissulvcd, subject to aiiy
tenns that may be imposed by the Registrar ar~d to any nghs
acquired by any person after its dissolution.

164 ( I ) Where

(a) a society is to be dissolved pursuant to tali, Part, or

Appoin!rnznt
of liquidator.

ANTIGUA 88 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

the Registrar may appoint a liquidator to wind up the affairs of the
society.

(2) Notwithstanding subsection (1) where the Registrar is
satisfied that the society has no assets and liabilities, he may issue
a certificate of dissolution in the prescribed form.

Commencement 165. The liquidation of a society commences where

(a) a special resolution for dissolution of the society is
approved by the Registrar pursuant to section 158;

(6) the Registrar appoints a liquidator pursuant to section
160 or 161;

(c) the Court makes an order to dissolve pursuant to
section 162.

Cessation
of business.

166. (1) From the date of the commencement of its liquidation

(a) a society continues in existence, but shall cease to cany
on its business except insofar as may be required, in the
opinion of the liquidator, for an orderly liquidation;
and

(b) any transfer of shares, other than a transfer made to or
with the approval of the liquidator, and any alteratio~
in the status of the members made after commence-
ment of the liquidation are void.

General provisions 167. (1) Where two or more liquidators are appointed, all the
respecting provisions in this section with respect to a liquidator apply to all
liquidators. of the liquidators.

(2) On the appointment of a liquidator pursuant to this Part, all
the powers of the directors vest in the liquidator.

(3) A liquidator may delegate any of the powers vested in him
pursuant to subsection (2) to the directors or members.

(4) Where the members of a society appoint a liquidator, they
may, a &at time or at a subsequent general meeting, pass a

No. 2 of 1997. The Co-operative Societies Act 1997. 89 ANTIGUA
AND

BARBUDA

resolution giving direction to the liquidator with respect to the
disposal of the property of the society.

(5) Where

(a) the members appoint a liquidator and do not issue
direction pursuant to subsection (4); or

(b) a liquidator is not appointed by the members,

the liquidator is subject to the directions, orders and instructions of
the Regism with respect to the mode and terms and conditions on
which he may dispose of the whole or any part of the property of the
society.

(6) Where a vacancy in the office of liquidator occurs, the
Registrar may appoint another person to fill the vacancy.

(7) In all proceedings connected with the society, the liquidator
is to be described as the liquidator of the society and not by his
individual name only.

168. On his appointment, a liquidator shall Duties of
liquidator.

(a) immediately give notice of his appointment,

(i) in the case of a liquidator not appointed by the
Registrar, to the Registrar, and

(ii) to each claunant and creditor known to the
liquidator.

(b) immediately publish notice of his appointment in the
Gazette and once a week for two consecutive weeks in
a newspaper p t e d and published in Antigua and
Barbuda.

(c) set out in the notice mentioned in paragraphs (a) and
(b) a provision requiring any person

(i) indebted to the society, to render an account and
pay to the liquidator at the time and place
s p e c i f i

ANTIGUA 90 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(ii) passessing property of the society, to &liver it to
the liquidator at the time and place spedied,
and

(i) having a claim against the society, whetber
liquidated, mliquidated, futureor contingent, to
present parlicuh of the claim in writing to the
liquidator not later than two months after the
first publication of the notice;

(d) take into his cust~~Iy and control the property of the
society;

(e) open andmaintain amst account forthemoneys of the
d r y ;

(n maintain separate lists of the members, &tors and
other person having claims against the society;

(g) where at any time he determines that the society is
unable to pay or adequateIy provide for the discharge
of its sbligstions, w l y to theRegistrar for directions;
and

(h) deliver to the Registrar and the society, at las t once in
evefy twelve-month period after his appointment or
mare often as the Registrar may quire, financial
statementsof the society in the form req W i n section
124 or in any fom that the liquidator considers proper
or that the Registrar may quire.

169. (1) The liquidator may

(a) main attorneys-at-law, accountants, engineers, ap
praisers and other pmfessional advknq

(b) bring, defend or take part in any civil, criminal or
dminktrative action or proceeding in the name and
on bebalf of the society;

(c) carry on the business of the society as qukd Em sen
orderly liquidation;

No. 2 of 1997. lk Co-operative Societies Act 1B7. 91 ANTIGUA
AND

BARBUDA

(d) sell by public auction orprivate sale any propetty of the
society;

(e) do all acts and execute any documents in the name and
onbebalfofthesociety;

113 borrowmaneyontbesecurityofrhepropertyoftbe
society;

(8) settle or compllomise any claims by or against the
SQckW; and

(h) do al l othea things that he considers necewry f a the
obligation of the society and distribution of its prop
erty.

(2) Where ahquidator has mson to believe that any person has
inhis~ionaunderhiscontrolahasconcealed, withhelda
~anypropertyofthesocie€y,hemayapplytotbe
Courtforanorderrequiringthatpersontoappearbefae theCourt
at the time and p k d e s ' i in the order and to be examined.

(3) Where the examination mentioned in subsection (2) dis-
closes that a peason bas con- withbeld a m i q p p h e
prom Ofthesociety, the court may ader that peason torestore the
property a pay compensation to the liquidator on behalf of the
society.

(4) Subject to the approval of the Registrar, no liquidator shall
purchase, directly aindkt ly, any part of the stock-in-trade, debts
a~~~etsofthesaciety.

170. (1) Aliquidata isnot liable where he relies in good faith on Limitation on
liability of
liquidator.

(a) financial statements of the society qresented to him

(i) by an offiax of W i e t y , or

(it) by the auditor of the society in a written report
that state that the financial statements reflect
fairly the financial condition of the society; or

ANTIGUA 92 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) an opinion, a report or a statement of an attorney-at-
law, an accountant, an engineer, an appraiser or other
professional advisor retained by the liquidator.

casts of 171. (1) A liquidator shall pay the costs of liquidation out of
liquidation. the property of the society and shall pay or make adequate

provision for all claims against the society.

(2) After the date s-ed by the liquidator for distribution
pursuant to section 168 (c) (i), he may distribute all or any part of
the assets of the society among the parties entitled to the assets
having regard to the claims of which the liquidator has notice.

(3) The liquidator is not liable for any part of the assets of the
society distributed pursuant of subsection (2) to any person notice
of whose claims the liquidator did not have at the time of distribu-
tion.

(4) When distributing the assets of a society pursuant to this
section, the liquidator shall pay, in priority to the claims of the
creditors of the society, the wages or salaries of all persons, other
ihan directors, employedby the society at the time of the commence-
ment of the obligation or within one month before, not greater than
threemonths' wages or salary, and thosepersons are entitled torank
as creditors of the society for any residue of the claims.

Q'33lueof
liquidation.

172. (I) In the liquidation of a registered society the funds,
including the Reserve Fund, shall be applied as follows:

(a) firstly to the costs of liquidation;

(b) secondly to the discharge of the liabilitiesof the society;

(c) thirdly to the payment of share capital,

(d) fourthly, if the by-laws of the society permit, to the
payment of a dividend at a rate not exceeding ten per
cent per annum for any period during which no
distribution of profits has been made.

(2) Any surplus remaining after the application of the h 1 Q b
the purposes sp.%ied in subsection (1) may, at the discretiion ofthe
Registrar, be used for any cmpaative purpose he considers fit.

No. 2 of 1997. The 0-operative Societies Act 1997. 93 ANTIGUA
AND

BARBUDA

( 3 ) W h r e t h e ~ ~ 0 n i s c l O S e d ~ t t o ~ ~ ~ o n ( l ) , t h e
Registrar shall

(a) iss~~onswithrespecttothecustody~dislposa)
of the documents and records of the society; and

(b) discharge the liquidator.

(4) Whete tbe Registrar dkcbges a liquidator pursuant to
subsectim (3). he &all issue a certificate of dissolution in the
@bed -.

(5) The society ceases toexist on the date shown in the axtiticate
of dissolution.

173. A persun who has been p t e d custody of the documents custody of
and records of a dissolved society remains liable to produce those
documents and maids for six years following the date of its
dissolution or until the expiry of any other shorter period that the
Regism may set.

174. (1) W h a there 1s no zlp3ment or provision fmhg the Remuneration
remuneration of a liquidator, he is entitled to a commission bakd Of liquidator.
on the net proceeds of the estate of the society realised after
deducting his expenses and disbursements.

(2) 'Ihe amount of the commission mentioned in subsection (1)
is equal to

(a) [5%] on the Eirst $1,000 realised,

(b) [2.5%] on the next $4,000 realised, and

(c) [1.25%] on any sum greater than $5,000 realised.

(3) Where a liquidator applies to the Registrar, he may increase
the amount of commissions set out in subsection (2).

(4) No liquidator is entitled to any fee or charge for his services
in addition to the commission allowed pursuant to this section.

175. (1) Notwithstanding the dissolution of a society pursuant to continuation
this Act, of actions.

ANTIGUA 94 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) a civil, criminal or administrative action or proceeding
commenced by or against, the society before its disso-
lution may be continued as if the society had not been
dissolved; and

(b) acivil, criminal or administfative action or m i n g
may be brought against he society within two years
after it dissolution as if the society had not been
dissolved; and

(c) any property that would have been available to satisfy
any judgement or order if the society had not been
dissolved remains available for that purpose.

(2) Service of a document on a society after its dissolution may
be effected by serving the document on a person shown on the
records of the Registrar as one of the last directors of the society.

(3) Notwithstanding the dissolution of a society, a person to
whomany of its property has beendistributed is liable to any person
claiming pursuant to subsection (1) to the extent of the amount
received by that person on the distribution with respect to any share
of the society that that person held, and an action to enfarce such
liability may bebrought within two years after thedateofdissolution
of the society.

unknown 176. (1) On the dissolution of a society, the liquidator shall
chimants
a m e u b m . convert into money the portion of the property distributable to a

creditor or member who cannot be found after a reasonable
investigation and shall deposit the money in aregistered society or
with trustees appointed by the Registrar.

(2) A payment pursuant to subsection (1) is deemed to be in
satisfaction of a debt or claim of such creditor or member.

(3) Where a creditor establishes within three years after the
dissolution of a society that he is entitled to any money paid,
pursuant to subsection (I), to a registered society or to trustees
appointed by the Registrar, the society or the Registrar, as the case
maybe, shall pay the amount of the claim out the moneys deposited

(4) Where moneys deposited pursuant to this section are not
distributed within three years after the dissolution of a society then,
subject to the approval of the Registrar, the society or the trustees

No. 2 of 1997. The Co-operative Societies Act 1997. 95 ANTIGUA
AND

BARBUDA

appointed by the Registrar shall distribute those moneys in accor-
dance with section 171 (1) or the by-laws.

177. (1) Whare, in the course of the dissolution d a society it power of
appears that any person who has taken part in the organisation or Regism to
management of such society or any part or present officer of the mMe.
society has misapplied or retained or become liable or accountable
for any money or property of such society or has been guilty of
misfeasance or breach of trust in relation to such society, the
Registnu may, on the application of the liquidator or of any creditor
ar contribuW, carry out an examination into the conduct of such
perm and make an order requiring him to repay or reston the
money or rate as the Registrar thinks jwtor to contribute such sum
to the assets of such society by way of CO-on in regard to the
misapplication, retainer, dishonesty or breach of trust as the
Regism thinks just.

(2) This section shall apply notwithstanding that the act is one
for which the offender may be criminally responsible.

178. Any person aggrieved by any order of the Registrar made ~ppeal against
under section 177 may appeal to the Cooperative Societies Appeal surcharge.
Tribunal within twenty-one days frm the date of such order and the
dec'iion of the Tribunal shall be final on any question of fact

179. (1) This part does not apply to a society that is bankrupt Appication of
within the meaning of the Bankruptcy Act. Part XI.

(2) Where a society is at any time found in pawdings pursuant
to the B&ptcy Act, to be mpt within the meaning of that
Act, any p r m g s taken pursuant to this Part to dissolve or to
liquidate and dissolve the society are stayed.

PART W

180. (1) The Registrar may Examination.

(a) on his own motion, or

(b) on the application of the lesser of twenty-five members
and 10% of themembers, appointapersonas examiner
who shall make an examination of the books of the

ANTIGUA 96 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

society and examine the affairs of the society and shall
make available his report to the Registrar.

(2) Subject to subsection (3), the Regism may direct that the
expenses incidental to an examination under taken pursuant to this
section are to be defrayed.

(a) by the members applying for the examination;

(b) by the society or its officers; or

(c) by any combination of the members, the society or its
offim.

(3) Where an examination undertaken pursuant to this section
reveals substantial irregularities in the business of the society, the
Registrar shall not direct any members on whose motion the
e xamination was commenced to &kay the expenses.

(4) Where the Registrar appoints an examiner pursuant to
subsection (I), the society and its officers, members, agents or
employees shall furnish the examiner with any books, accounts,
securities or other documents the examiner requires to perform the . .
e-on.

Investigations. 181. (1) A member, the Registrar or any interested person may
apply ex parte, or on any notice that the Court may require, to the
Court for an order directing an investigation to be made of the
society and any ofits member societies or corporations.

(2) On an application pursuant to subsection (I), the Court may
order an investigation of a society or of any of its affiliates where it
appears to the Court that

(a) the society is not f u I f ~ g thepurpose stated in its by-
laws;

(b) the society is not carrying on business in aamdance
with this Act, the regulations or the by-laws;

(c) the society is not organised or being operated on co-
operative principles;

No, 2 of 1997. The Co-operative Societies Act 1997. 97 ANTIGUA
AND

B m m

(dl ~ ~ 0 f t h e s o c i ~ m ~ o E i Q m a n h ~ 0 ~ ~
is or has been carried out with intent to defraud any
persotk;

(e) the business or flairs of the society or any of its
member societies are or have been d e d on or
conducted, or the powers of the dimtors are or have
been exercised, in a manner &a is oppressive or
unfairly prejudkd to or mfairly disregmded the
iaterest of a member of security holder.

(fj ttle~oranyofitsmembermietieswasfomed
fbr a bdtdent or untawfbl purpose or is to be
dissolved for a fraudulent or orkwful purpose; or

(g) persons concerned with the formation, business or
affairsof the society or any of its member societieshave
acted Eraudulently or dishonestly, in connection with
the society.

(3) an applicant fw an order pursuant to this d o n is not
r e q & t o g i v e ~ f o r c o s t s .

(4) An ex parte application pmupt to this section &all be
heard hcmnera

(5) No person ma;v publish anything relating to ex parte
pmmdings conducte8pursuant to this section other than with the
authotisation of the Court or the written consent of the society being
investigated

182. In connection with an investigation pmuant to section Court order.
181, the Court may make any oder it considers appropriate,
including an order

(a) to investigate;

(b) appointing an inspectot, who may be the Registrar,
fixing the remuneration of an inspector and replacing
an inspector,

(c) detmnhing the notice to be given to any interested
person or dispensing with notice to that person;

ANTIGUA 98 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(d) authorising an inspector to enter any premises in
which the Court is satisfied there might be relevant
information, and to examine anything and make
copies of any document or record found on the pre
mises;

(e) requiring any person to produce documents or records
to the inspector,

Cf) authorising an inspector to conduct a hearing, admin-
ister oaths and examine any person on oath, and
prescribing rules for the conduct of the hearing;

(g) requiring any person to attemd a hearing conducted by
an inspector and to give evidence on oath;

(h) giving directives to an inspector or any interested
person on any matter arising in the investigation;

(i) requiring an inspector to make an interim or final
report to the Court and to the Regism,

0) deemhe whether a report of an inspector made
pursuant to paragraph (i) should be published and,
where published, ordering the Registrar to publish the
report in wholeor in part or to sendcopies toany person
the court designates;

(k) requiring an inspector to discontinue an investigation;

(1) requiring the society or aperson who applied pursuant
to section 162 for an order to pay the costs of the
investigation.

Powers of 183. (1) An inspector appointed pursuant to section 182 (b) has
inspector. the powers set out in the order appointing him.

(2) In addition to the powers set out in the order appointing him,
an inspector may furnish to, or exchange information and otherwise
mm with, any public official in Antigua and Barbuda or
dsewhm who

(a) is authorised to exercise investigatory powers; and

No. 2 of 1997. The Co-operative Societies Act 1997. 99 ANTIGUA
AND

BARBUDA

(6) is investigating, with respect to the society, an allega-
tion of improper conduct that is the same as or similar
to the conduct described in section 176 (2).

184. (1) Any intert?~ted person may apply to the Court for an Hearing in camera.
order that a hearing conducted by an inspector appointed pursuant
to section 182 be heard in camera and for directions on any matter
arising in the investigation.

(2) Aperson whose conduct isbeiig investigatedor who isbeiig
examined at a hearing conducted by an inspector appointed
pursuant to section 182 has aright to be represented by an attorney-
at-law.

(3)Aperson whoseconduct isbeing investigatedor who isbeing
examined at a hearing conducted by an inspector appointed
pwsuant to section 182 (b) has a right to be represented by an
attorney-at-law.

185. (1) NO person is excused from attending and giving Inaiminatins
evidence and producing documents and records to an inspector memen's.
appointed pursuant to section 182 (b) by reason only that the
evidence tends to incriminate himor subjecthim to any proceedings
or penalty.

(2) No evidence described in subsection (1) may be used or
received against any person in any proceeding instituted against
him, other than a prosecution for perjury in giving evidence.

186. (1) Any oral or written statement or report made by an Absolute privilege
inspector or any other person in an investigation undertaken respecting
pursuant to this Part has absolute privilege. statements.

(2) Nothing in this Part affects the privilege that exists in respect
of an attorney-at-law and his client.

PART XIII

DISPUTES

187. (1) Where any dispute that relates to the business of a settlement of
society arises disputes.

ANTIGUA 100 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) among members, former members and person claim-
ing through members or deceased members

(b) between a member, former member or person claim-
ing through a member or a deceased member, and the
society, its board, or any officer of the society;

(c) between a member and the society arising out of or
underany by-law relating tothe disposalof the produce
of agricultural or animal husbandry, or under any
conmct made pursuant to this Act;

(d) between the society and any other society;

any party to the dispute may refer it to the Registrar for decision.

(2) The Registrar may, before procmhg to hear or determine
a dispute, make or cause to be made a preliminary investigation

(a) toascertain thecause,

(b) to define the issues,

(c) to bring about a voluntary settlement between the
parties to the dispute.

(3) For the purpose of ba ing any dispute the Registrar or
& m r , as the case may be,

(a) may administer oaths, and

(i) the attendance of all parties concerned and
witnesses, and

(ii) the production of aLl books, documents and
things relating to the dispute.

(4) The Registrar or arbitrator, as the case may be, may order the
expenses of determining any dispute, including fees to an attorney-
&-law to be paid by the society or the parties m the dispute.

No. 2 of 1997. The Co-operative Societies Act 1997. 101 ANTIGUA
AND

BARBUDA

(5) A party aggrieved by a decision of the Registrar or an
arbitrator may appeal to the Co-operative Societies Appeals Tribu-
nal within such time and in such manner as may be prescribed.

(6) Notwithstanding anything in this section, aregisteredsociety
may exercise any rights arisiig by law under any charges, mort-
gages, bids of sale or other securities duly executed in accordance
with this Act or any other law without recourse to arbitration.

(7) For the purposes of subsection (I), a claim by a society for any
debt or demand due to it from a member, former member or the
personal representative of a deceased member is a dispute that
relat-5 to the business of a society within the meaning of subsection
(1).

188. (1) There shall be a Co-operative Societies Appeals Cooperahve
Tribunal which shall consist of three persons, one of whom shall be Syieties Appeals
an attorney-at-law of at least five years standing. Tribunal

(2) The members of the Tribunal shall be appointed by the
Minister after consultation with the National League or National
Council for a period of not more than three years, and are eligible
for re-appointment.

(3) The Tribunal shall have jutisdiction to hear appeals against
a d&ision of the Registrar or an arbitrator.

14) T k members of the Tribunal shall receive such remunera-
tion as the Minister determines.

189. (1) Notwithstanding anything contained In sections I87 stataI
and 188 the Registrar or an arbitrator m y in the coursz cf or on On rluestlon of
making a determination in a dispute refer a questi~n of hv, arrsxng la-#.

therefrom to the Court, by way of case stated for the opinion of that
Com.

(2) A judge may consider and determine any question of law so
referred and the opinion given on such question shall be final and
binding.

190. (1) An award by the Registrar or an arbitrator may, by a ~ y 0 ' ~ ~ ~ f v e r y
of the Court, be enforced in hke manner as a judgement or order to of loans.

ANTIGUA 102 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

the same effect, and where leave is so given, judgement may be
entered in terms of the award.

(2) Where a dispute relates to the recovery of a loan made by a
society to a member of that society, such a dispute may, notwith-
standing section 187, be brought before the magistrate for the
dismct in which the society conducts business.

(3) The provisions of any law which placesamonetary limitation
on the jurisdiction of amagistrate shall not apply with respect to any
dispute r e f e d to a magistrate pursuant to subsection (2).

(4) An appeal shall lie to the court with respect to the decision
of a magistrate under this section.

PART XlV

SPECIALIZED SOCIETIES

Credit Unions

Interpretation 191. (1) In this part
and application.

"consumer society" means a society whose primary purpose
is to purchase, procure, process, manufacture, exchange, hire
or deal in goods or services for sale at retail to its members
who are to be the ultimate users or consumers of those g o d
and services;

"credit union" means aregistered society providing coopera-
tive savings and lending business for its members;

"housing charges" means the fee charged by a housing
society to its members to cover its costs of providing housing
accommodation;

"housing unit" means housing accommodation lntended for
individual or family use;

"industrial society" means a society whose primary purpose
is to operate an enterprise in which its members are the
workers necessary for the operation;

No. 2 of 1997. The Co-operative Societies Act 1997. 103 ANTIGUA
AND

BARBUDA

"liquid assets" means assets maintained by a credit union to
ensure that it can meet its commitments with respect to loans
and withdrawal of deposits.

192. (1) No credit union shall carry on any business that is Restrictions.
contrary to this Act, the regulations or its by-laws.

(2) No credit union shall

(a) underwrite insurance or the issue of securities by
another person;

(b) act as agent for any insurance company or for any
person in the placing of insurance; or

(c) subject to subsection (3), require, directly or indirectly,
that a borrower place insurance for the society of the
credit union in any particular insurance agency.

(3) Nothing in paragraph (c) of subsection (2) prevents a credit
union from requiring insurance for the security of the credit union.

(4) No act of a credit union, including the transfer of property to
or by a credit union is contrary to this Act or the regulations.

(5) Without prejudice to the generality of paragraph (a) of
subsection (2), a credit union may, with the permission of the
Regism, do all other acts and things as are incidental or conducive
to or consequential upon the attainment of its objects.

193. (1) Every credit union shall maintain liquid assets in the Liquid assets
amount specified in section 119 and in the f m prescribed.

(2) Amy credit union which fails to maintain the liquid assets
required by this section may be placed under a receiver pursuant to
Part X by the Regism.

194. (1) Every credit union shall make an allowance for doubtful M ~ ~ ~ ~ ~ ~ ~ .
loans in accordance with therequirements setout in Bheregulations.

195. (1) Subject to this Act and the regulations, every loan must Loan
be approved in accordance with the policies established by the
directors before any funds are advanced.

ANTIGUA 104 The Co-operative Societies Act 1997. No. 2 of 19%'.
AND

BARBUDA I

(2) A loan to a &ecm, a credit committee member or an
employeeofa&E~manypersonc~nnectedwithoneof them
must be approved in the manner prescribed in the regulations.

(3) Any person who knowingly approves or grants a loan in
contravention of Act or the regulations shall be held liable for
any losses resulting to the credit union in connection with that loan.

Security for loans. 1%. Subject to any restrictions that may be prescribed in the
regulations, the credit union may take any security for loans that it
considers advisable and in keeping with sound business practices.

Loan limits. 197. (1) Loans may be made only to members and to other
registered societies.

(2) The by-laws shall provide for limits on the amounts of loans
to any one member or on any type of loans.

Reporting loans. 198. (1) Where a credit union is reporting loans on the balance
sheet in its annual financial statements, it shall report the loans at
their net estimate value after deducting the allowance for doubtful
loans pursuant to section 193(1).

(2) Any advance given by way of overdraft or line of credit is
deemed to be a loan for the purposes of the balance sheet and must
be reported as a loan.

1ntere.d on ~oans. 199. (1) The maximum intemals at which interest on loan must
be paid may be prescribed in the regulations.

(2) Where a borrower has not paid the interest on this loan for
a period determined in the regulations, the credit union shall not
include that interest in income.

Depcsits. 200. (1) Subject to section 16, a credit union may, without the
authority, aid, assistance or intervention of any other person or
0fflclal

(a) receive &posit from any person, whatever his age,
status or condition in life whether or not that person is
qualified by the law to enter into ordinary contracts;
and

No. 2 of 1997. The Co-operative Societies Act 1997. 105 ANTIGUA
AND

BARBUDA

(b) pay any or all of the &posit andany or all of the interest
on the deposit to or to the order of that person unless,
before payment, the money so deposited is claimed by
some other person

(i) in any action or proceeding to which the credit
union is a party and in respect of which service
of a writ or other process originating such action
or proceeding has been made on the credit
union, or

(ii) in any other action or proceeding pursuant to
which an injunction or order made by the Court
requiring the credit union not to make payment
of the money or to make payment of it to a person
other than the depositor has been served on the
credit union;

and in that case the money so depositedmay be paid to the depositor
with the consent of the claimant or to the claimant with the consent
of the depositor.

(2) Deposits may be accepted in the manner and form and on any
condition that may be prescribed in the regulations.

201. (1) A credit union is not bound to see to the execution Credit union and
of any trust, whether express, implied or constructive, pursuant ~ N S ~ S .
to which any deposit or share is subject.

(2) Where any deposit or share is subject to a trust of which the
credit union has notice, the receipt or order

(a) of the trustee in whose name the deposit or share
stands, or

(b) if the deposit or share stands in the names of two or
more trustees, all those trustees or any of them who,
pursuant to the document creating the trust, may be
entitled to receive the deposit or share,

is, notwithstanding any trust to which the &posit or share is subject,
a sufficient discharge for the payment of any money payable in
respect of the deposit or share, and the credit union is not bound to
see to the application of any money paid on the receipt or order.

ANTIGUA 106 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

B m U D A

(3) Notwithstanding any neglect or omission on the part of a
credit union to enter aproper description in its books, no executor,
administrator, guardian, committee or trustee who is entered on the
books of the credit union as a member, or who is described as
representing a named estate, trust or trust beneficiary in such
capacity is personally liable to the credit union with respect to the
share that he represents.

(4) The estate or trust beneficiary represented by a person
described in subsection (3) continues to be liable to the credit union
in the same manner and to the same extent as if the testor, minor,
ward, person of unsound mind, beneficial trust or their trust
beneficiary were entered on the records of the credit union as the
holder of the shares.

Consumers' Societies and Housing Societies

~eseicti011~ 202. (1) Subject to subsection (2), no employee of a consumers'
on dkedmhip. society or housing society may be a director of the society.

(2) A society may provide in its by-laws that no more than one-
third of its directors may be employees.

Relationship with 203. The relationship between a housing society and its mem-
members. bers is not a relationship between a landlord and his tenants.

BY-laws. 204. The by-laws of a housing society must, in addition to the
matters required to be set out therein by section 10, include the
following:

(a) the manner in which each member may be required to
furnish capital for the purposes of the society;

(b) the manner in which amember may be required to pay
for housing charges or other reserves;

(c) the basis for fixing the amount of housing charges;

(d) subject to section 27, the manner of withdrawal by a
member and the repayment of a member's interests in
the society; and

(e) the rules governing any leases of housing units by
members to non-members.

No. 2 of 1997. The Co-operative Societies Act 1997. 107 ANTIGUA
AND

BARBUDA

205. Where the by-laws of a society provide that it is a housing Amendment of
society or that this Part applies to the society, the society may not by-1aws.
repeal or amend that provision of the by-laws without the consent
of the Registrar.

206. Where a housing society has a share capital the society NO interest on share
shall not pay any dividend on the share capital to its members. w i b 1 .

207. (1) Where a person's membershp in a housing society is psession

terminated, any right of that person to possess or to occupy
terminated.

residential premises acquired by virtue of membership in the society
is terminated.

(2) Where a person's membership in a housing society is
temhated and the member does not give up possession of the
housing unit heoccupies, the housing society may apply to thecourt
to recover possession or to recover any arrears of housiig charges.

208. (1) Where a member Abandoned goods.

(a) has his membership terminated or has vacated or
abanded the housing unit formerly occupied by him,
and

(b) has left property in the housing unit,

the housing society may apply to the Magistrate's Court for the
District where the housing unit is situate for an order authorising
it to remove the property for the housing unit and sell or otherwise
dispose of it.

(2) The Magistrate may make anorderpursuant to subsection (1)
where he is sarisfied that the housing society has made areasonable
effort to locate the former merr~ber.

(3) Where a housing society sells or otherwise disposes of
property pursuant to an order made under subsection (2), it shall pay
into the Magistrate's Court, to the credit of the former member, any
remaining proceeds of the disposition after deducting

(a) any amount with respect to costs incurred by it relating
to the disposition that it would be authorised to retain

ANTIGUA 108 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

if the property were goods sold pursuant to distress for
housing charges, and

(b) any arrears of housing charges and damages that the
Magistrate allows.

(4) Where a former member does not claim the remaining
proceeds described in subsection (3) within three months after the
date the money was paid into the Magistrate's Court, the money
shall be paid into the Consolidated Fund.

(5) Where a housing society removes, sells or otherwise disposes
of property pursuant to an order made under subsection (2), the
housiig society is not liable in any action taken by the former
member with respect to the removal, sale or disposition.

Industrial Societies

Membership. 209. (1) In an industrial society, 75% of all employees must be
members of the society.

(2) Subject to subsection (3), no workers' society shall sub-
contract out more than 50% of its work.

(3) Where a workers' society applies to the Registrar, he may
allow the workers' society to sub-contract out more than 50% of its
work.

BY-laws. 210. In addition to the matters required to be set out in the by-
laws pursuant to section 10, the by-laws of a society must include

(a) conditions of admission, expulsion or suspension of its
members;

(b) aprocedure for laying off members when there isa lack
of work and a procedure of recall to work;

(c) remuneration of workers involved in the day to day
work of the society; and

(4 allocation of bonus among members.

No. 2 of 1997. The Co-operative Societies Act 1997. 109 ANTIGUA
AND

BARBUDA

21 1. No industrial society may be registered where the acqui- Restriction
sition of goods for sale to the public is one of its principal objects On registration.
stated in its by-laws.

212. When allotting among creditors or paying a bonus based Bonus based on
to the members of an industrial society the directors may take into labour.
account the labour contribution of each member.

213. Notwithstanding any other provision of this Act, the Employees may be
majority of directors of an industrial society may be employees of directors.
the society.

PART XV

APEX BODY

214. Registered societies may establish an apex body which Establishment
may be called the National League or National Council and which and constitution of
shall be composed of such member representative of all societies 'pex body.
which may exist in Antigua and Barbuda..

215. (1) The National League or National Council shall co- Functions.
ordinate, assist and promote dl registered societies and shall
perform such functions as may be determined by its constituent
members.

(2) Without prejudice to subsection (I), the National League or
National Council shall have responsibility for the a

dmi

nistration
and management of the Development Fund as establish by section
120.

216. (1) The off~cers of the National League or National Council office,,
shall be elected at the first meeting of that body and shall hold office
for a period of one year and thereafter the election of such officers
shall be in accordance with the by-laws of the National League or
National Council.

(2) The National League or National Council shall regulate its
own procedure.

217. The Registrar shall, from time to time, consult the consultation by
National League or National Council with respect to matters Regist'=.
relating to development of registered societies.

ANTIGUA 110 The Co-operative Societies Act 1997. No. Zof 1997.
AND

BARBUDA

PART XVI

Offences

Corruptpractices and 218. (1) Where
bribery.

(a) any member, agent or employee of a society corruptly
accepts, agrees to accept, obtains or attempts to obtain
whether for himself or another, any gift or consider-
ation as an inducement reward for

(i) doing or forbearing to do any act relating to the
business of the society, or

(ii) for showing favour or disfavour to any person in
relation to the business of the society; or

(b) any person corruptly gives, agrees to give, or offers
such gift or consideration to any member, agent or
employee of a society as inducement or reward for any
purpose mentioned in paragraph (a),

he is guilty of an offence and is liable

(i) in the case of an offence under paragraph (a), on
summary conviction to a fine of $5000 and to
imprisonment for two years or both such fine
and imprisonment and on indictment to impris-
onment for three years,

(ii) in the case of an offence under paragraph (b), on
indictment to imprisonment for five years.

(2) In this section "consideration" includes valuable consider-
ation of any lund.

Falsely obtaining 219. (1) Any person who
property of society.

(a) obtains possession of any property or is granted any
loan by a society by false representation or other
corrupt means,

(b) wrongfully withholds or misapplies any such property
or loan, or

No. 2 of 1997. The Co-operative Societies Act 1997. 11 1 ANTIGUA
AND

BARBUDA

(c) wilfully applies any part of the property or loan to
purposes other than those directed or expressed in the
by-laws of the society or authorised in this Act or the
regulations,

is guilty of an offence and is liable on summary conviction to a fine
of $1,000 or to imprisonment for one year and on conviction on
indictment to a fine of $10,000 or to imprisonment for five years.

(2) In any procediings under this section the person accused
may, in addition to any penalty imposed, be ordered

(a) to deliver up any property or repay any sum of money
to which the p r o d i n g s relate, and

(b) pay the cost of the proceedings.

220. (1) A society or any officer or member thereof or any Failure to comply
other person with A C ~ .

(a) who fails without reasonable cause or wilfully neglects
or refuses to comply with an requirement of this Act or
the regulations or to furnish any information, or

(b) who purporting to comply with any such requirement,
knowingly furnishes false information

is guilty of an offence.

(2) Any person who wilfully or without reasonable cause
disobeys any summons, order orhection lawfully issued under h s
Act or the regulations is guilty of an offence.

(3) Any officer or member of a society who wilfully contravenes
the by-laws of the society relation to his duties or functions as such
officer or member is guilty of an offence.

(4) A person guilty of an offence under this section is liable on
summary conviction to a fine not e x W n g $5,000 or imprison-
ment of six months or both and to a further fine of $50 for each day
for which thecontraventioncontinues after aconviction is obtained.

221. (1) Any person who Dealing in property
subject to charge.

ANTIGUA 112 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(a) fraudulently or clandestinely removes any property
comprised in a charge created in favour of a society
from the place where such property was situate at the
time of the execution of the charge, or

(b) knowingly disposes of, or deals with or attempts to
dispose of or deal with such property without first
obtaining in writing leave of the society,

is guilty of an offence and is liable on summary conviction to a fine
of $5000 and to imprisonment for six months or both.

(2) The Court may in addition to any penalty imposed on a
person pursuant to subsection (1) require that person to repay such
amount of the loan with interest as has not been repaid at the date
of the conviction; and the payment of that amount shall discharge
the liability of the borrower to repay the loan.

~ f f e n c e s with 222. (1) A person guilty of an offence, who makes or assists in
respect to reports. making areport, return, notice or other document, requiredin this

Act or the regulations to be sent to the Registrar to any other
person, that

(a) contains an untrue statement of a material fact; or

(b) omits to state a material fact required in the report or
necessary to make a statement continued in the report
not misleading in the light of the circumstances in
which it was made.

(2) A person guilty of an offence under subsection (1) is liable
on summary conviction

(a) in the case of an individual, to a fine of $2000 and to
imprisonment for a term of one year or both.

(b) in the case ofaperson other than an individual, to afine
of $10,000.

(3) Where the person guilty of an offence under subsection (1)
is a body corporate and whether or not the body corporate has been
prosecuted or convicted, any director or officer for the body
corporate who knowingly authorises, permits or acquiesces in the

No. 2 of 1997. The Co-operative Societies Act 1997. 113

offence is alsoguilty of an offence and liibleon summary conviction
to afineof $2000and to imprisonment for a m of one year or both.

(4) No person is guilty of an offence under subsection (1) or (3)
where the untrue statement or omission

(a) was unknown to h i , and

(b) in the exercise of reasonable diligence, could not have
been known to him.

223. Every person who

(a) without reasonable cause, contravenes a provision of
this Act or the regulations for which no penalty is
otherwise provided, or

(b) fails to give any notice, send any return or document
that is required for the purpose of this Act,

is guilty of an offence and is liable on summary conviction to a fine
of $2000 and to a further fine of $100 for each day for which the
contravention continues after a conviction is obtained.

224. (1) No person doing business in Antigua and Barbuda shall
use the words "credit union" or "co-operative" or any or abbrevia-
tion or derivation thereof as part of its name, or with respect to its
goods, wares, merchandise or services or its method of conducting
its business, or hold itself out to be registered society unless it is
registered under this Act.

(2) A person who contravenes this section is guilty of an offence
and liable on summary conviction to a fine of $2000 and to a further
fine of $100 foreach day for which thecontraventioncontinues after
a conviction is obtained.

225. Where a person is convicted of an offence under this Act
or the regulations, the court may, in addition to any punishment
imposed, order the person to comply with the provision of this Act
or the regulations for the contravention of which he has been
convicted.

226. The effluxion of time is no bar to prosecution for an
offence under this Act.

ANTIGUA
AND

BARBUDA

Contravention of
Act.

Use of words
"credit union"
"co-operative"

Order to comply.

Limitation.

ANTIGUA 114 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

Preservation of 227. No civil remedy for an act or omission under this Act
civil remedy. is suspended or affected by reason that the act or omission is

an offence under this Act.

PART XVII

MISCELLANEOUS

Interpretation. 228. In this Part,

(a) "duplicate originals" means the two copies of the by-
laws or statements required in section 229;

(b) "statement" means a special resolution stating an
intent to dissolve mentioned in section 158.

Execution and 229. (1) Where this Act requires that by-laws or a statement
filing. relating to a society shall be sent to the Registrar, unless otherwise

specifically provided, the society shall send three copies of the by-
laws or statement signed by a director or an officer of the society.

(2) Subject to the other provisions of this Act, where the Registrar
receives duplicate originals of any by-laws or statement pursuant to
subsection (1) and they are accompanied by any other required
documents and the prescribed fees, the Registrar shall

(a) endorse on each of the duplicate originals the word
"Registered" and the date of the registration;

(b) issue in duplicate the appropriate certificate and attach
to each cerlificate one of the duplicate originals of the
by-laws or statements;

(c) file a copy of the certificate and attached by-laws or
statement;

(d) send to the society the original certificate and attached
by-laws or statement; and

(e) publish in the Gazette notice of the issue of the
certificate.

(3) TheRegistrar tnay date a certificate mentioned in subsecdtrn
(2) as of the day he receives the by-laws or statement issued pwsuant

No. 2 of 1997. The Co-operative Societies Acr 1997. 11 5 ANTIGUA
AND

BARBUDA

to which the certificate is issued or as of any later day specified bythe
person who signed the by-laws or statement.

(4) A signature requiredon acertificate mentiomdin subsection
(2) may be printed or otherwise mechanically produced on the
certificate.

230. Where anotice or document is required by this Act or the Waiver of notice.
regulations to be sent, the sending of the notice or document may
be waived or the time for sending the notice or document may be
waived or abridged at any time with the consent in writing of the
person entitled to receive the notice or document.

231. (1) A director or officer of a society may Certificate of
society.

(a) sign a certificate stating any fact set out in, or

(b) certify a copy of the whole or any part of,

the by-laws, or any other contract to which the society is party or the
minutes of ameeting of the hectors, acommitteeof directors or the
members.

(2) A certificate or certified copy described in subsection (1) is
admissible in evidence as prima facie proof of the facts contained
in the cert

ifi

cate or certified copy without proof of the signature or
official character of the person appearing to have signed the
certificate or the certification.

232. Where a notice or document is required to be sent to the Copies of
Registrar pursuant to this Act, the Registrar may accept a photo- documen&.
static or photographic copy of the notice or document.

233. Where the Registrar is authorised by the person who sent *Ikration.
a notice or document or his representative, the Registrar may alter
the notice or document, but hemay not alter an affidavit or statutory
declaration.

234. (1) Where a certificate containing an error is issued to Corrections.
a society by the Registrar, the directors or members of the
society shall, on the request of the Registrar

(a) pass the resolutions and send to him the document
required to comply with this Act; and

ANTIGUA 116 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(b) take any other steps that he may require;

and the Registrar may demand the surrender of the certificate and
issue a corrected cerllficate.

(2) A cerMicate corrected pursuant to subsection (1) must bear
the date of the certificate it replaces.

Exemption from 235. (1) Every society registered under this Act is exempt from
-dutyand other any stamp duty, taxes and fees with which, under any law for the
taxes. time being in force, instruments executed by or on behalf of such

society or by an officer or member and relating to the business of
such society, or any class of such instruments, are respectively
chargeable.

(2) Notwithstanding anything contained in any enactment, every
registered society shall be exempt from the payment of income tax,
corporation tax and any other tax on the incomes of such societies.

Limitation 236. Except as is expressly provided in this Act, no civil court
jurisdiction. shall have any jurisdiction in respect of any matter concerned with

the dissolution of a society under this Act.

proof of entries m 237. (1) A copy of any entry in a book or other document that is
books and other required to be kept by this Act shall, if certified by the Registrar be
documents. received in any legal proceedings, civil or criminal, as prima fmie

evidence of the existence of such entry and shall be admitted as
evidence of the matters, transactions and accounts therein recorded
in every case where, and to the same extent as, the original enuy
itself is admissible.

(2) No officer of any such society shall, in any legal proceedings
to which the society is not a party, be compelled to produce any of
the society's books, the content of which can be proved under
subsection (2), or to appeal as a witness to prove any matters,
transactions or accounts therein recorded, unless the Court for
special reasons so directs.

Regulations. 238. For the purpose of carrying out this Act, the Minister may
make regulations

(a) defining, enlarging or restricting the meaning of any
word used but not defined in this Act;

No. 2 of 1997. The Co-operative Societies Act 1997. 117 ANTIGUA
AND

BARBUDA

(b) requiring the payment of and prescribing the amount
of any fee with respect to

(i) the filing, exmimion or copying of any docu-
ment, or

(ii) any action that the Regism is required or
authorised to take pursuant to this Act;

(c) prescrib'ig the procedure for appeals to the Registrar;

(d) prescrib'ig business in which societies or any class of
socieijes my not engage without the prior approval of
the Registrar,

(e) exempting any society or class d societies from any
provision of this Act; and

0 prescrib'ig any other matter or thing required or
autharised to be prescribed by this Act.

TRANSITIONAL

239. In this Part "'the former Act" means rhe Co-operarive Interpretation
Societies Act. cap. 103.

240. (1) The existing directors and officers shall continue to Existing directors
hold office in accordance with the former Act and the by-laws and officers.
of the Society.

(2) Where new directors of a society are to be elected after the
cornencement of the Ac& such directors shall be elected in
amdance with this Act.

241. All societies which prior to the comxahencementdthis Act histing societirs.
were duly regiskred under the forrner Act shall be deemed to be
registered under this Act.

242. (1) Subject to s~b~e~ti011(2), the Co-operalive S O C ~ C ~ ~ S Act Repeal and savings.
is repealed. cap. 103.

ANTIGUA 1 18 The Co-operative Societies Act 1997. No. 2 of 1997.
AND

BARBUDA

(2) All rules, regulations and by-laws made pursuant to the
former Act shall continue in force until such time as new rules and
regulations and by-laws are made.

(3) Notwithstanding subsection (I), where a society is being
dissolved or liquidated pursuant to the former Act, that Act
continues to apply to that society.

Coatmencement. 243. ThisActshallcomeintooperationonadateto~
by the Minister.

Passed the House of Representatives this Passed the Senate this 17th day sf
14th day of January, 1997. February, 1997.

B. Harris,
Speaker.

M. Percival,
President.

S. Walker, S. Walker,
Clerk to the House of Representatives. Clerk to the Senate.

Printed at the Government Printing Office, Antigua and Barbuda,
By Rupert Charity, Government Printer

-By Authority, 1997.
8 G 5 . 9 7 [ Price $44.60 1