Division of a Co-operative
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, follow these steps:
Register as a Customer
To view information on how to register as a customer, click here. If you are already registered as a customer, and know your customer code and password, proceed to step 2.
Deposit funds
Deposit R125-00 into the CIPC bank account. For the bank account details, click here.
Divide the co-operative
Print and complete the following forms:
Scan and e-mail the completed and signed documents together with supporting information to cooperativesonline@cipc.co.za
The following supporting documents must be included in your e-mail:
- Confirmation notice of name reservation - CoR9.4
- Certified identity copy of members
- Power of attorney (if applicable)
- Proof of payment of R125 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 the 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.
Service turnaround time: 10 working days from date ofthe application.
Click here to lodge an enquiry.
Important: Queries relating to transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.
