Co-operative Societies Act 1979 · 2020 Revised Edition · Part 6 · Property and Funds of Societies
73. Bonus certificates and bonus shares
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A society may distribute a part of its net surplus among its members in the form of bonus certificates or bonus shares.
society
“society” means a co-operative society registered under this Act and includes a primary society, a secondary society and an apex organisation;
A society may distribute in the form of a bonus certificate only a part of its net surplus payable under ordinary shares.
net surplus
“net surplus” means the remaining portion of the surplus after provisions have been made for the Central Co-operative Fund and the Singapore Labour Foundation in accordance with section 71;
In the case of bonus certificates, the members holding the certificates are only entitled to claim payment out of the society’s funds 5 years after the date when the bonus certificates were issued.
No interest or dividend may be paid on the bonus certificates.
dividend
“dividend” means a portion of the net surplus or the reserves (if approved under section 72A) of a society distributed among the members of the society in proportion to either or both of the following:(a)the paid‑up share capital held by the members in the society;(b)the subscription capital held by the members in the society;
Where a society distributes a part of its net surplus payable under ordinary shares in the form of a bonus share —
the bonus share is to take the form of an ordinary share; but(b)a member is entitled to withdraw or transfer a bonus share only 10 years after the date when the bonus share was issued.
Where a society distributes a part of its net surplus payable under permanent shares in the form of a bonus share issued to an institutional member —
institutional member
“institutional member” means a society, a trade union or a platform work association;
the bonus share is to take the form of a permanent share; and
the bonus share —
cannot be withdrawn by that institutional member, and cannot be converted to an ordinary share; but(ii)may, with the approval of the committee of management of the society and in accordance with this Act and the by‑laws of the society, be transferred by that institutional member to another institutional member of the society.
Despite subsections (3) and (5), a member of a society who is a foreign worker is eligible to receive from the society the value of the member’s bonus certificate or bonus share if —
member
“member” includes an individual person or institution qualifying for membership in a co-operative society, who or which join in the application for the registration of a society, and an individual person or institution admitted to membership after registration in accordance with this Act, the Rules and the by-laws;
the member ceases employment in Singapore for any reason, including the completion of the member’s contract of service; and
the committee of management of the society is satisfied that the member —
has left or will soon leave Singapore permanently; and
has no intention to resume employment in Singapore.
Despite subsections (3) and (5), a person who is authorised to administer the property of a member is eligible to receive from the society the value of the member’s bonus certificate or bonus share if the member is —
dead;
bankrupt;
a society for which a winding up order has been made under section 83(1) or (2); or
a trade union that has been dissolved under section 19 of the Trade Unions Act 1940.
In this section —
“foreign worker” means an individual who is employed in Singapore but is neither a citizen nor a permanent resident of Singapore;
“member” includes a person who has resigned as a member.