Coop rules/8 Transmission of Shares

From EcoReality

Contents

Part 8 -- Transmission of Shares

Procedure on death of a member

(Rule 33) Upon death of a member

  1. their member and investment shares may be offered to an heir by special resolution, or
  2. their member and investment shares may be transferred to a third party, approved by special resolution, with the proceeds of that transfer going to the estate of the deceased member, or
  3. their member and investment shares may be redeemed to the estate of the deceased party.

It is entirely the discretion of the members which method shall be used upon death, to be determined by special resolution.

Registration of share prohibited if person entitled is not a member

(Rule 34) The Association must not register a membership share or investment share in the name of the person entitled to a deceased member's shares unless

  1. that person is a member, and
  2. the transfer has been authorized by the directors.

Redemption of shares

(Rule 35) If the person entitled to the membership share or investment share of a deceased member does not qualify for membership under Part 2 or the directors do not authorize the transfer of shares to that person, the Association must, subject to The Cooperative Association Act, redeem those shares by paying to that person, within 12 months of the date on which the person provided the Association with proof of his or her entitlement, the amount paid up on the shares.

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