Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 6 : Capital Structure43. Funds of members |
| (1) | The constitution of a co-operative may provide for the establishment of one or more funds of members in which the member of a co-operative may be credited with— |
| (a) | contributions made by the member to that fund; |
| (b) | any amount set aside for future payment to members including— |
| (i) | interest on an amount paid upon the member’s shares; |
| (ii) | any patronage return allocated to the member; |
| (iii) | any amount paid to the member after reducing share capital; and |
| (c) | any other money due to the member, the payment of which is deferred. |
| (2) | The money standing to the credit of a member in a fund of members— |
| (a) | may be applied for any purpose permitted in terms of the constitution of a co-operative except for writing off of losses; |
| (b) | must be paid to the member in the manner and at the time provided for in the constitution of a co-operative; |
| (c) | may bear interest at a rate fixed in the constitution of a co-operative; and |
| (d) | may, on the due date, be set off against a debt owed by the member to the co-operative. |
| (3) | Actions of a co-operative in terms of this section are not deemed to be activities prohibited by the Banks Act, 1990 (Act No. 94 of 1990), by reason only of the fact that the co-operative administers a fund of members. |