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October 29, 2019
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Matt Dolf
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Rule 8: Payment for shares
8.1 Payment for shares
Membership shares are payable on call and may be forfeited for default of payment. All shares must be paid for in cash.
8.2 Calls on unpaid amount of shares
The Directors may make calls on the members for any of the money unpaid on shares and a call is deemed to have been made at the time when the resolution of the Directors authorizing the call was passed.
8.3 Interest on unpaid calls
If a call is not paid on or before the date set for payment, the member from whom the money is due must pay interest on the unpaid amount of the call at the rate of 8% per year from the date set for payment until the date of payment and the interest that accumulates is a debt due to the Co-op. The Directors may waive payment of any or all of the interest due.
8.4 Notice requiring payment of call
If a member fails to pay a call on or before the date set for payment, the Directors may, at any time after that date, deliver a notice on the member requiring payment within 14 days from the date of service of the unpaid amount of the call together with any interest that has accrued.
8.5 Failure to comply with notice
If a member on whom a notice has been delivered does not make the payment required by that notice in the time specified, the share in respect of which the notice is given may be forfeited to the Co-op by a resolution of the Directors.
8.5 Effect of forfeiture
The following applies to the forfeiture of shares under Rule 8.5:
[a] The forfeiture is effective on the date that the Directors make the resolution.
[b] A member whose share has been forfeited ceases to be a member in respect of the forfeited share and the Directors may strike the member’s name from the register of members and cancel the share certificate of the forfeited share.
[c] A forfeited share may be sold or otherwise disposed of on terms and in a manner the Directors think fit and, at any time before a sale or disposition, the forfeiture may be cancelled on the terms the Directors think fit.
[d] A member whose share has been forfeited remains liable to the Co-op for interest accrued and that interest is a debt due to the Co-op.
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