| (1) |
A distribution account must subject to the provisions of regulation 108 provide for a residue referred to in regulation 102(f) to be applied according to the provisions of this regulation. |
| (2) |
The residue referred to in sub regulation (1) must in the first place be applied in paying back the paid-up share capital of the co-operative to shareholders of the co-operative. |
| (3) |
If such residue is less than the paid -up share capital the amount to be paid to a shareholder out of such residue must be an amount which bears the same ratio to the amount of such residue as the paid -up value of his shares bears to the paid-up share capital. |
| (4) |
If such residue exceeds the paid -up share capital the balance remaining after the paid-up share capital has been paid back must subject to the provisions of sub regulation (8) be allocated to the members of the co-operative— |
| (a) |
in the case of a co-operative the main object of which involves that its members conduct transactions with or through it, in accordance with the patronage proportion; |
| (b) |
in the case of a co-operative the main object of which does not involve that its members conduct transactions with or through it, in accordance with a basis set out in the constitution. |
| (5) |
The patronage proportion mentioned in sub-regulation (4)(a) must be determined with reference to either the period specified in the constitution of the co-operative which preceded the commencement of the winding-up of the co-operative or the period for which the co-operative has existed, whichever period is the shorter: Provided that the period mentioned in the constitution of the co-operative must not be less than five years. |
(6) For the purposes of sub regulations (4) and (5)—
| (a) |
the value of the transactions conducted by a former member with or through such co-operative during the appropriate period referred to in sub regulation (5) may be added to the value of the transactions of a member who is entitled to an allocation under sub regulation (4), provided— |
| (i) |
the former member, or, if he or she is deceased, his or her executor, has submitted his or her written consent to that effect to the co-operative within 90 days after such former member ceased to be a member of the co-operative; and |
| (ii) |
the constitution of the co-operative so provides; |
| (b) |
a co-operative incorporated in consequence of a conversion under section 66 will be deemed to have existed as from the date of incorporation of the previous co-operative so converted, and the value of the transactions conducted by a member of the first-mentioned co-operative during the appropriate period with or through the previous co-operative as a member may be added to the value of the transactions conducted by him or her with or through the first-mentioned co-operative; |
| (c) |
a co-operative incorporated in consequence of an amalgamation of two or more co-operatives under section 56 must be deemed to have existed as from the date of incorporation of the most recent of those co-operatives, and the value of the transactions conducted by a member of the amalgamated co-operative during the appropriate period with or through any of the previous co-operatives of which he or she was then a member may be added to the value of the transactions conducted by him or her with or through the amalgamated co-operative. |
| (7) |
The registrar may notwithstanding the provisions of sub regulations (4), (5) and (6) direct the liquidator to allocate the balance remaining after the paid-up share capital has been paid back, to the members of the co-operative on any basis determined by the registrar. |
| (8) |
If the constitution of a co-operative provides that an amount must be paid to any particular person or for any particular purpose in the event of the co-operative being wound up, the balance referred to in sub regulation (4) must in the first place be applied for the payment of such an amount. |
Older Persons Act, 2006
