Debentures

The Co-operatives Act 2009 WA and the CNL apply parts of the  Corporations Act to public offers of securities by co-operatives. Read Disclosure documents for co-operatives for a summary of how the Corporations Act provisions apply.

Once the board has decided to raise funds by offering debentures to external investors the following steps need to be undertaken.

1. Appoint a trustee for debenture holders Section 283AA Corporations Act.
2. Prepare a disclosure document see s337 CNL or s250 Co-operatives Act 2009 WA.
3. Lodge disclosure document with Registrar – following lodgement there is a seven-day public exposure period during which no applications for securities can be accepted. The seven-day period can be extended by the Registrar for a further seven days.
4. Prepare administrative arrangements:
   1. Create a register of securities – Schedule 2 CNR or Schedule 4 Co-operatives Reg. 2010 WA. A sample register is available at the end of the Capital Builder;
   2. Set up a documentary certification process (paper or electronic) to record the allotment of securities to individuals; and
   3. Establish a payment facility for subscriptions for securities.
5. The offer is live at the end of the public exposure period.

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