Conversion to a Company or Cancellation of Registration as a Co-operative

1. A co-operative may apply in terms of section 62 to:

• convert into any other form of corporate of unincorporated body in accordance with the applicable legislation; and cancel its registration as a co-operative.

1. An application to convert may only be made if the board of directors has submitted a proposal to a general meeting, detailing the reasons for and the terms of the proposed conversion.
2. A copy of the proposal must be attached to the notice of the general meeting and must be adopted by special resolution.
3. A declaration by the board of directors of the co-operative must be attached to an application establishing:

• compliance with the relevant provisions of the Co-operative Act and the constitution of the co-operative; and
• that the interests of creditors will be protected in accordance with section 64.

1. The registrar may require the board of directors to submit such proof as the registrar may require in any matter contained in the declaration by the board of directors.
2. If the registrar is satisfied that there has been compliance with the provisions of this Act, the registrar must:

• cancel the registration of the co-operative; and
• remove its name from the register of co-operatives

1. As from the date on which the registration of a co-operative is cancelled:

•  the co-operative cease to exist
• all assets, rights, liabilities, and obligations of the co-operative vest in the corporate body or unincorporated association of persons into which the co-operative has been converted if it is by virtue of its constitution capable of owning property separate from its members; and

If the co-operative is converted into a company, all members of the co-operative become shareholders of that company

A co-operative can be converted to a company.  The conversion can be done manually.

Note: Please note that when submitting your conversion application with the Companies Division, you must reserve the name and attach the conversion approval letter.

NB: Lodgement of a passport copy is only accepted as proof of identity for non-residents of South Africa. For South African residents a green bar-coded/ smart  ID copy must be lodged

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