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Co-Operative Societies Act 2008 116. Prohibited loans 1. Subject to subsection (2), no society and no member society shall, directly or indirectly, give a loan, guarantee or other means of financial assistance— a. to a member, director, officer or employee of the society or member society or an associate of any such person for any purpose; or b. to any person for the purpose of or in connection with, the acquisition of membership of the society or the purchase of a share issued or to be issued by the society or member, where there are reasonable grounds to believe that the society is insolvent or would, after giving the financial assistance, be insolvent. 1. 2. A society may give a loan, guarantee or other means of financial assistance— a. to a person in the ordinary course of business, where the lending of money is part of the ordinary business of the society; b. to a person on account of expenditure incurred or to be incurred on behalf of the society; c. to a member society or a member of a member society; or d. to employees of the society or any of its member societies to enable or assist them to purchase or erect living accommodation for their own occupation.    |
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