If members of a co-operative would like to divide a co-operative into two or more co-operatives, a special resolution is needed. Pass a special resolution at a general meeting convened for approval of the division. Each of the new co-operatives will have to comply with the requirements of a co-operative. The agreement must set out the terms of the division and how the division will be done, including the following:
- The provisions of the constitution of each co-operative
- Which members will become members of each of the co-operatives
- The manner in which the assets, rights, liabilities and obligations of the cooperative are to be divided between the co-operatives to be constituted by the division
- The business of each of the co-operatives constituted by the division and the area or sector in which they are to operate; and
- The name and address of the proposed directors of the co-operatives have to be constituted.
To divide a co-operative the following supporting documents must be included:
- CR1 – Application to register a co-operative
- CR4 – Notice of appointment of auditor OR
- CR8 – Application for exemption from full compliance with auditing requirements.
- Deposit R215.00 click here for bank details
- CoR9.4 – Confirmation notice of name reservation
- Certified identity copy of members
- Power of attorney (if applicable)
- Proof of payment of R215 per co-operative
- Copy/summary of the proposed division agreement must accompany the notice of meeting
- The constitutions of the co-operatives to be constituted by the division must be submitted to CIPC for approval together with a notice of their registered offices and a notice of the directors of the co-operatives in question.
- A declaration by the directors of the co-operative being divided, establishing that the relevant provisions of its constitution have been complied with in approving the division;
A declaration by the directors of each co-operative constituted by the division, establishing that there are reasonable grounds to believe that- - the co-operatives to be constituted will be able to pay their liabilities as they become due;
- the realisable value of the assets of the co-operatives to be constituted will not be less than the total liabilities, share capital and reserves; and
- the interests of creditors will be protected in compliance with section 64.
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.
E-mail:
