Growth Capital Units

The Board may issue Cooperative Capital Units (CCU) to members and Non-Members. This entitles a person to one vote per CCU, with varying rights, but with none of the entitlements of a member of the Co-operative.

35.2 Growth Capital Units

(a) Growth Capital Unit is a class of co-operative capital unit issued on the authority of the board in accordance with rule 77.

(b) Terms of issue of a Growth Capital Unit are –

(i) a unit has a fixed nominal value of $1.00;
(ii) a unit participates in surplus assets and profits as recorded in the accounts of the Co-operative maintained in accordance with rule 77, in proportion to the total Balanced Capital Units on issue;
(iii) the repayment of capital can only be –

(A) from retained profits and is at the discretion of the board; or
(B) on winding-up of the Co-operative;

(iv) each unit ranks equally with every other Growth Capital Unit on issue;
(v) Growth Capital Units carry no entitlement to interest;
(vi) Growth Capital Units shall receive the equivalent return as paid on “A” class shares;
(vii) on a winding-up Growth Capital Units rank in priority to payment –

(A) behind secured debts;
(B) behind unsecured debts;
(C) equally with shares and Deferred Capital Units on issue; and

(viii) there is no limit on the total holding of Growth Capital Units that may be acquired by persons who are not members of the Co-operative.

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