Western Australian Numbered Acts Western Australian Numbered Acts (1) An officer of a
co-operative who is not a director of the co-operative must not obtain
financial accommodation from the co-operative other than —
(a) with
the approval of a majority of the directors; or
(b)
under a scheme about providing financial accommodation to officers that has
been approved by a majority of the directors.
Penalty: a fine of $24 000 or imprisonment
for 2 years.
(2) For the purposes
of this section, financial accommodation is taken to be obtained by an officer
of a co-operative if it is obtained by —
(a) a
proprietary company in which the officer is a shareholder or director; or
(b) a
trust of which the officer is a trustee or beneficiary; or
(c) a
trust of which a corporation is trustee if the officer is a director or other
officer of the corporation.
(3) A co-operative
must not give financial accommodation to an officer of the co-operative
if —
(a) by
giving the financial accommodation, the officer would contravene this section;
and
(b) the
co-operative knows or should reasonably know of the contravention.
Penalty: a fine of $50 000.