Section 29Part 3 — Duties and Privileges of Societies
Restriction on transfer of share or interest
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The transfer or charge of the share or interest of a member, past member or deceased member shall be subject to such conditions as may be prescribed by this Law or regulations made thereunder: Provided that a member shall not in any event transfer any share held by that member or that person’s interest in the capital of the society or any part thereof unless the transfer or charge is made to the society, to a member of the society or to a person whose application for membership has been accepted by the committee.
A purchaser under any execution or any other person succeeding by operation of law or otherwise to the share or interest of a member in a society shall not be entitled to membership or become a member by virtue only of such purchase or transfer.
A registered society may, by rules, provide for the purchase by the society of the share or interest of any member.
In the case of a credit union which may issue shares which carry voting rights, shares representing ten per cent or more of total voting rights of the credit union shall not be issued to a member, and issued shares representing ten per cent or more of the total voting rights of the credit union shall not be transferred or disposed of in any manner by a member, without the prior approval of the Authority.
The Authority shall not grant the approval specified in subsection (4) where persons acquiring control or ownership of shares representing ten per cent or more of the total voting rights of the credit union are not fit and proper persons by the Authority’s assessment.
For the purposes of subsection (4), the credit union shall provide such information to the Authority, and within such time as the Authority may specify, for the purpose of assessing whether persons acquiring control or ownership of such shares representing ten per cent or more of the total voting rights of the credit union are fit and proper persons to have such control or ownership.
For the avoidance of doubt, the references to shares representing ten per cent or more of the total voting rights of the credit union include the cumulative acquisition of shares or voting rights which amount to ten per cent or more of the total voting rights of a credit union.