TYPES OF SHARES
Kanjini Co-Op have a tiered Share structure. Shares can be paid off after a minimum deposit.
STATEMENT OF THE RIGHTS AND LIABILITIES
ATTACHING TO SHARES
UNDER THE COOPERATIVES ACT 1997 AND THE RULES OF THE COOPERATIVE
Each member can hold only one full share or one foundation share or one introductory share.
| Share |
Cost |
Voting |
Liabilities & Conditions |
Rights & Benefits |
Dividends |
Full Share |
$ 100,000 Can be paid off after a deposit of $20,000.- (Interest payable on outstanding balances) |
Full Voting rights |
Annual membership levy: $1100 Maintain active membership Contribute labour as per Labour and Food Schedule Must be at least 18 years of age |
Right to reside in any class of accommodation at minimal cost - maintenance contribution. (see maintenance contribution schedule) Ability to sell/trade share as described in s18 Rules |
Receives dividends for paid up value, which can be used by members to pay up shares |
Foundation Share There are |
$100,000 Can be paid off after a deposit of $20,000.- (Interest payable on outstanding balances) |
Full Voting rights The prior approval |
This class of share has all of the |
This class of share has all of the rights and
benefits of a full share. |
Receives
dividends |
Introductory Share This class of share is for people who intend to acquire, but do not have the deposit for a full share and are willing to work towards that aim. |
$ 10,000 Can be paid off after deposit of $2,000 Interest payable on outstanding balances Non-refundable, but can be converted to deposit for full share. |
An Introductory share holder is an in-active member and as such has no voting rights until he/she becomes a full share holder (see 5. (1) (a) Rules). |
Annual membership levy: $550 Maintain active membership Contribute labour as per Labour and Food Schedule Must be at least 16 years of age Introductory shareholders cannot be directors and/or office holders. This share cannot be sold or transferred and expires after 33 months. |
Introductory shares (see maintenance contribution schedule) Before this type of share expires, the shareholder can elect to have the share value converted towards a deposit for a full share. If the share holder wishes to withdraw or is asked to leave, (s)he might apply for a refund, which cannot exceed the paid up value of the share minus any rent saved as compared with a visitor. |
This share does not earn any dividends |
Investment shares |
Capital cost per investment share $500
|
No additional voting rights |
No annual fee The only limit to the number of investment shares a member can hold is that no member can hold more than 20% of the Co-Op's total issued share value. Can be project targeted or non-specific or self-interest (see below table for more details). This class of shares must be paid in full |
Ability to sell or trade the share as described in s18 Rules |
|
Types of Investment shares |
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- Project targeted |
If a project is funded by targeted investment shares only, 1/3 of net returns (profits)
are divided pro-rata to those investment shares targeting the project, |
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-Non-specific |
Non-specific investment share values will be doubled for dividend purposes (so a |
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-Self-interest |
If a project is of self-interest (eg fixed asset to the members living space) the
investment shares will not receive any dividends as long as they are used by that
shareholder. Whenever the project becomes income producing for the Co-Op (for
example if the share-holder is on holidays and this house is used by visitors or other membes), project targeted
dividends will be paid on those shares. |
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Please Note: |
If a project is funded by Co-Op funds, 1/2 of the profits go to all shareholders (all paid up portions of full shares plus all investment shares), the remaining 1/2 goes to the Co-Op budget. |
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Please Note: The capital cost and value of all shares will be increased each year by the CPI of the previous financial year.
Interest earned before Property Purchase
Interest earned on members paid-up share capital until the Co-Op purchases its first property will be
paid as dividends to those members within one month of the property purchase (proportional to time
and amounts paid).
Labour Contribution
Each member (including those in their acceptance period) living on Co-Op land is required to
contribute ten hours/week.
Part time residents are to contribute proportionally, however for full members this is accounted for
on a yearly basis for more flexibility.
Active Membership Requirements
To maintain active membership of the cooperative, a member shall:
1. Hold a minimum of one Full or Foundation share
2. Pay an application fee as outlined in the Disclosure Statement
3. Commit to pay Annual Subscription levy as outlined in the Disclosure Statement
4. Keep up to date with payments due
5. Commit to provide labour as per Labour and Food schedule
6. Commit to Maintenance Contribution agreements as per Maintenance Contribution Schedule
7. Provide a proxy when required
8. Commit to abide by the rules
9. Provide valid contact details to the Co-Op at least once a year
10. Adhere to the Conflict Resolution Policy (Disclosure Statement Annexure)
11. Abstain from stealing and/or physical violence on any property owned or leased by Kanjini Co-Op
12. Commit to participate in the equivalent of a one week residential workshop with all members once a property has been
purchased or commit to a three month trial period.
RIGHTS ATTACHING TO SHARES
1 Nature of shares in the cooperative
A share in the cooperative is personal property; and is transferable or transmissible as provided by the Act and the rules of the cooperative; and
is, subject to the rules of the cooperative, capable of devolution by will or by operation of law. (s142)
2 Cancellation of membership of an inactive member and forfeiture of shares held under Part 6 of the Act or resignation of a member
under rule 20(4).
On the cancellation of membership of an inactive member under part 6, shares are to be forfeited and within 1 year after the date of
cancellation, the amount owing including any amount paid up for shares forfeited is to be –· paid to the former member; or required by the rules of the cooperative. (s70) [rules 7, 14 and 71].
3 Charge over shares
The shares are subject to a charge by the cooperative in relation to any debt payable by a member or former member to the cooperative. (s75)
[rule 26]
4 Calls on shares
The board may make calls on the members for amounts unpaid on the shares (whether on the nominal value of the shares or by way of
premium). (s145(2))[rule 15] Where calls are unpaid the shares are liable to be forfeited. [rule 21]
5 Forfeited shares
A person whose shares have been forfeited under the rules remains liable to pay to the cooperative all amounts which (as at the date of
forfeiture) were payable by the person to the cooperative for the shares. This is apart from calls in default. [rule 22]
6 Forfeiture for non-payment of subscription
The shares of a member whose periodic fee (subscription) under rule 7 has not been paid may be forfeited by resolution of the board. [rule 23]
7 Additional shares
The board may require a member to take up or subscribe for additional shares under a proposal approved by the members by special resolution.
(s149) [rule 13(5)]
8 Winding-up membership cancellation
A former member of the cooperative who had their membership cancelled under part 6, within 2 years before the start of a winding-up of the
cooperative, shall be liable on the winding-up to contribute to the property of the cooperative the nominal value of shares forfeited under that
cancellation. (s314(1))
9 Winding-up share repurchase
If a member had a share repurchased or the whole or part of the amount paid up on a share repaid by the cooperative under section 170, within
2 years before the start of a winding-up of the cooperative the member or former member shall be liable on the winding-up to contribute to the
property of the cooperative the amount paid by the cooperative together with any amount unpaid on the shares immediately before the purchase
or repayment. (s314(2)).
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