Section 116 Conversion of company into a society: member's shareholding in company exceeds maximum permitted amountC1

(1)

This section applies in relation to a resolution under section 115 where the nominal value of the company's shares held by a member other than a registered society exceeds the amount specified in section 24(1) (maximum shareholding).

(2)

The resolution may provide for the conversion of the shares representing that excess into a transferable loan stock—

(a)

bearing such rate of interest as may be fixed, and

(b)

repayable on such conditions as are determined by the resolution.

Annotations

Modifications

C1: S. 116 excluded by 1979 c. 34, s. 23(5) (as inserted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 13(4) (with Sch. 5))