Co-operatives Act, 2005 (Act No. 14 of 2005)RegulationsCo-operatives Administrative Regulations, 2016Chapter 2 : Winding Up and Judicial Management of Co-operativesPart B : Judicial Management of Co-operatives125. Effect of provisional judicial management order |
| (1) | When a provisional judicial management order is granted— |
| (a) | no shares in the co-operative or amount of money from a members' fund may be refunded to any member or to any member whose membership was terminated within six months prior to the granting of the provisional judicial management order; and |
| (b) | the constitution of the co-operative will remain in force in so far as it is not in conflict with the directives of the provisional judicial management order, unless the registrar is of the opinion that the application of any provision of the constitution is not in the interests of the members or creditors during the provisional judicial management, and he notifies the provisional judicial manager in writing that such provision must be suspended. |
| (2) | The registrar may at any time terminate the suspension referred to in sub regulation (1)(b) and notify the provisional judicial manager in writing thereof. |