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

Chapter 2 : Registration, Constitution, Powers of Co-operative and Registered Office and Record Keeping by Co-operative

Part 2 : Constitution and powers of co-operative

15. Provisions where members are required to hold shares

Where a member is required to hold shares in a co-operative upon application or acceptance as a member, the constitution of a co-operative must provide—

(a)	for the minimum number of membership shares to be issued to each member;

(b)	for the nominal value of the shares;

(c)	whether the membership shares are to be issued fully paid up or not fully paid up, and the conditions under which shares are to be paid;

(d)	for the circumstances under which additional shares may be issued to members;

(e)	for the maximum percentage of the share capital of a co-operative a member may hold, except in the case of a secondary or tertiary co-operative;

(f)	for the circumstances under which shares issued to a member may be redeemed.