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

Chapter 6 : Capital Structure

41. Membership shares
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(1)The constitution of a co-operative may provide for membership shares to be issued to members.

 

(2)Each member must at all times hold the minimum number of membership shares prescribed by the constitution.

 

(3)The constitution may permit additional membership shares to be issued to members.

[Section 41(3) substituted by section 31 of Notice No. 558, GG 36729, dated 5 August 2013]

 

(4)All membership shares issued must be of the same class and ranking for all purposes including rights, liabilities and interest payments.

[Section 41(4) substituted by section 31 of Notice No. 558, GG 36729, dated 5 August 2013]

 

(5)Interest on membership shares is only payable on membership shares, or that portion of membership shares, that are paid up.

[Section 41(5) substituted by section 31 of Notice No. 558, GG 36729, dated 5 August 2013]

 

(6)A transfer of membership shares is valid only if it complies with section 25 and any restrictions set out in the constitution.