Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 8 : Amalgamation, Division, Conversion and Transfer59. Division of co-operatives |
| (1) | A co-operative may decide to divide into two or more co-operatives, on condition that each co-operative will comply with the requirements for a co-operative to be registered in terms of this Act. |
| (2) | An agreement to divide a co-operative referred to in subsection (1) must set out the terms of the division and the means by which it will be effected including the following: |
| (a) | the provisions of the constitutions of each of the co-operatives to be constituted by the proposed division; |
| (b) | the members of the co-operative who will become members of the co-operatives to be constituted by the division; |
| (c) | the manner in which the assets, rights, liabilities and obligations of the co-operative are to be divided between the co-operatives to be constituted by the division; |
| (d) | the business of each of the co-operatives constituted by the division and the area or sector in which they are to operate; and |
| (e) | the name and address of the proposed directors of the co-operatives to be constituted. |