Section 32A
Capital gains. [S 61/2012]
(1)
A registered society shall credit to its Capital Reserve Account all capital gains arising from —
(a)
the sale of land, buildings or both, as fixed assets;
(b)
the re-valuation of land, buildings or both, as fixed assets, with the approval of the Registrar.
(2)
The capital gains referred to in subsection (1)(a) may be utilised by the registered society for all or any of the following purposes —
(a)
the issue of bonus shares;
(b)
the writing off of accumulated losses; and
(c)
the creation of a Bonus Share Redemption Fund.
Co-operative Societies 28
(3)
No registered society shall utilise the capital gains referred to in subsection (l)(a) for the purpose of issuing bonus shares unless and until all its accumulated and current losses, if any, have been completely written off.
(4)
The capital gains referred to in subsection (1)(b) may be utilised by the registered society for the issue to its members of bonus shares which shall not be withdrawn but which may, with the approval of the committee members or members of the directorate, be transferred to another member of that society or, in the case of a member who dies after the issue of bonus shares, be paid out of the Bonus Share Redemption Fund of that registered society.
(5)
The bonus shares redeemed by a registered society may be re-issued as bonus shares to its member in accordance with its by-laws.
(6)
A register of bonus shares shall be maintained by the registered society.
(7)
This section does not apply to a registered society that is required by the provisions of any other written law to deal with its capital gains in the manner provided in that law.