Co-operatives Act, 2005 (Act No. 14 of 2005)

Regulations

Co-operatives Administrative Regulations, 2016

Chapter 2 : Winding Up and Judicial Management of Co-operatives

Part A : Winding-Up of Co-operatives

Functions of liquidators

88. Banking account and investments

Purchase

(1)	The liquidator of a co-operative—

(a)

must open with a banking institution registered under the Banks Act, 1965 (Act 23 of 1965), a current account in the name of the co-operative, and must deposit therein to the credit of the co-operative all the money received by him or her on the cooperative's behalf as soon as may be possible but not later than seven days of the receipt thereof;

(b)

may, with the written consent of the registrar, open with such a banking institution or any other financial institution approved by the registrar, a savings account in the name of such co-operative, and may transfer thereto money deposited in the amount referred to in paragraph (a) and not immediately required;

(c)	may, with the written consent of the registrar, place money deposited in the account referred to in paragraph (a) and not immediately required on interest-bearing deposit with such a banking institution or financial institution;

(d)	must not withdraw any money in a savings account referred to in paragraph (b) or on interest-bearing deposit referred to in paragraph (c) otherwise than by way of a transfer to the said current account.

(2)	The liquidator of a co-operative must forthwith notify the registrar of—

(a)	the banking or financial institution and the branch with which he or she has opened an account referred to in paragraph (a) or (b) of sub regulation (1) or with which he or she has placed a deposit referred to in paragraph (c);

(b)	the number of that account or the reference number under which that deposit has been placed;

(c)	any transfer of money in such an account or so placed in deposit to any other banking institution or financial institution or branch of such a banking or financial institution.

(3)	A banking or financial institution referred to in sub regulation (2) must on the registrar's request forthwith furnish him or her with a statement showing deposits paid into and withdrawals made from an account referred to in sub regulation (1)(a) or (b).

(4)

The registrar and any surety for a liquidator will have the same right to information in regard to an account referred to in paragraph (a) or (b) of sub regulation (1) or a deposit referred to in paragraph (c) of that sub regulation as the liquidator him- or herself self-possesses, and may examine all documents in relation thereto, whether in the possession of the liquidator or a banking or financial institution.

(5)

The registrar may after notice to the liquidator in writing order a banking or financial institution with which an account referred to in paragraph (a) of (b) of sub regulation (1) has been opened or where a deposit referred to in paragraph (c) of that sub regulation has been placed not to allow any withdrawal from any such account or of any such deposit except with the approval of the registrar.

(6)	All cheques or orders drawn on an account referred to in sub regulation (1)(a) must contain the name of the payee and the cause of payment, and must be drawn to order and be signed by the liquidator or his or her duly authorized agent.