Section 10A
Formation of subsidiaries. [S 61/2012]
(1)
No registered society shall form, own, acquire or hold a subsidiary without the approval of the Registrar.
Co-operative Societies
B.L.R.O. 1/2015 13
(2)
The Registrar may approve a society to form a subsidiary if —
(a)
the by-laws of the society make provision for such formation;
(b)
the activity of such subsidiary is related to the society;
(c)
the activity of the subsidiary is such that it can only be performed by the subsidiary;
(d)
the formation of such subsidiary benefits all members of the society and is not prejudicial to the interest of the members of the society;
(e)
the formation of such subsidiary does not pose a threat to the society;
(f)
such subsidiary is approved by the general meeting;
(g)
the society has been operating profitably for a least 2 years continuously and has a healthy cash balance;
(h)
such subsidiary has a long term objective.
(3)
For the purpose of subsection (1), the society must submit the following to the Registrar —
(a)
current audited accounts;
(b)
minutes of the last annual general meeting;
(c)
current list of management personnel.
Address of society.