Part 5 — Capital Structure Division 1 Membership Capital
133 Reduction of stated capital
stated capital for any purpose by a special resolution of its
members and, if an investment share is proposed to be affected by
the reduction, by a special resolution of the investment
shareholders.
(2) A cooperative may not reduce its stated capital if there are
reasonable grounds to believe that
(a) the cooperative is, or after the payment would be, unable to
pay its liabilities as they become due, or
(b) the realizable value of the cooperative's assets after the
reduction would be less than the total of its liabilities.
(3) Subsection (2) does not apply to a reduction of stated capital by
an amount that is not represented by realizable assets.
(4) If a cooperative maintains more than one stated capital
account, the special resolution to reduce stated capital required by
subsection (1) must specify the stated capital account or accounts
that will be reduced.
(5) A creditor of a cooperative may apply to the Court for an order
compelling a person
(a) to pay to the cooperative an amount equal to any liability of
the person that was extinguished or reduced contrary to this
section, or
(b) to pay or deliver to the cooperative any money or property
that was paid or distributed to the person as a consequence
of a reduction of stated capital made contrary to this section.
(6) No action may be commenced to enforce a liability imposed by
this section more than 2 years after the date of the act complained
of.