Western Australian Numbered Acts Western Australian Numbered Acts (1) This section
applies if CCUs are redeemed out of profits.
(2) Subsections (4)
and (5) do not apply to a non-distributing co-operative.
(3) Out of profits
there is to be transferred to a reserve called the capital redemption reserve
a sum equal to the nominal amount of the CCUs redeemed.
(4) The provisions of
this Act relating to the reduction of share capital of a co-operative apply as
if the capital redemption reserve were paid up share capital of the
co-operative.
(5) The capital
redemption reserve may be applied in paying up unissued shares of the
co-operative to be issued to members of the co-operative as fully paid bonus
shares.