ADVOKS GLOBAL · KENYA
Co-operative Societies Act
60B. Power of the Court to set aside transaction that is under value
Edition: 2023-12-11 · In force
60B. Power of the Court to set aside transaction that is under value
(1)This section applies to a co-operative society in respect of which a liquidator is appointed.(2)In this section, "relevant time" has the meaning given by section 60D.(3)If the liquidator reasonably believes that the society has at a relevant time entered into a transaction with a person at an undervalue, the liquidator may apply to the Court for an order under subsection (4).(4)If, on the hearing of an application made under subsection (3), the Court finds that the transaction was undervalue, it shall make an order setting aside the transaction and restoring the position to that which would have existed if the society had not entered into the transaction.(5)For the purposes of this section and section 60E, a co-operative society enters into a transaction with a person at undervalue if—(a)the society makes a gift to the person or otherwise enters into a transaction with the person on terms that provide for the society to receive no consideration; or(b)the society enters into a transaction with the person for a consideration the value of which, in money or money's worth, is significantly less than the value, in money or money's worth, of the consideration provided by the society.(6)The Court may not make an order under subsection (4) in respect of a transaction at an undervalue if it is satisfied—(a)that the society that entered into the transaction did so in good faith and for the purpose of carrying on its business; and(b)that at the time when the society did so there were reasonable grounds for believing that it would benefit from the transaction.