Statute Details
- Title: Co-operative Societies (Exemption under Section 97) (No. 4) Order 2013
- Act Code: CSA1979-S794-2013
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Co-operative Societies Act (Chapter 62)
- Authorising Provision: Section 97 of the Co-operative Societies Act
- Key Subject Matter: Exemption from section 89(3) (destination of certain remaining/unclaimed funds)
- Citation: Co-operative Societies (Exemption under Section 97) (No. 4) Order 2013
- Commencement: 27 December 2013
- Status: Current version as at 27 March 2026
- Enacting Date: Made on 17 December 2013
- Designated Co-operative Society: ITE Co-operative Society Ltd
What Is This Legislation About?
The Co-operative Societies (Exemption under Section 97) (No. 4) Order 2013 is a targeted exemption order made under the Co-operative Societies Act (Cap. 62). In plain terms, it allows a specific co-operative society—ITE Co-operative Society Ltd—to be treated differently from the general statutory rule governing what happens to certain money when the society is wound up or deregistered.
Under the Co-operative Societies Act, there are rules about the handling of funds that remain after a co-operative society applies its assets to specified purposes, and about sums that remain unclaimed after a defined period following cancellation of registration. The default position is that such amounts are channelled to a particular public account: the Co-operative Societies Liquidation Account.
This Order modifies that default position for ITE Co-operative Society Ltd. Instead of transferring the relevant remaining and unclaimed funds to the Liquidation Account, the Order directs that those funds be donated to the ITE Endowment Fund. The legislation is therefore best understood as a narrow, purpose-driven financial routing instrument rather than a broad regulatory reform.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the formal identification and timing of the Order. It states that the Order may be cited as the “Co-operative Societies (Exemption under Section 97) (No. 4) Order 2013” and that it comes into operation on 27 December 2013. For practitioners, this matters because the exemption only becomes effective from the commencement date, and it may affect how funds are handled depending on when relevant events (such as cancellation of registration) occur.
Section 2 (Exemption from section 89(3) of Act) is the operative provision. It grants an exemption to ITE Co-operative Society Ltd from section 89(3) of the Co-operative Societies Act. The exemption is not blanket; it is limited “in so far as” to two categories of money:
(a) Moneys remaining after application of funds to purposes specified in section 88. The Order recognises that, upon winding up or dissolution processes, a co-operative society must first apply its funds to the purposes set out in section 88 of the Act. Only after those statutory purposes are satisfied does the question arise as to what happens to any residual funds. Section 2(a) ensures that, for ITE Co-operative Society Ltd, the residual amounts are not transferred to the Liquidation Account.
(b) Unclaimed sums after 2 years from the date of cancellation of registration. Co-operative societies may have members or other persons entitled to certain sums. The Act’s framework typically provides a period during which claims can be made. If sums remain unclaimed after 2 years from the date of cancellation of registration, the default statutory destination under section 89(3) would apply. This Order overrides that default for ITE Co-operative Society Ltd by directing that such unclaimed sums be donated elsewhere.
In both categories (a) and (b), the Order specifies the alternative destination: donation to the ITE Endowment Fund. The phrase “instead of being transferred to the Co-operative Societies Liquidation Account” is critical. It clearly indicates that the exemption changes the destination of the specified funds, not the underlying requirement that section 88 purposes be applied first, nor the fact that the 2-year unclaimed period is still relevant as a trigger.
From a compliance perspective, the Order therefore creates a two-step analysis for ITE Co-operative Society Ltd: (1) confirm that the funds fall within the categories described in section 2(a) and 2(b); and (2) ensure that the statutory routing is followed—donation to the ITE Endowment Fund rather than transfer to the Liquidation Account.
How Is This Legislation Structured?
This Order is extremely concise and consists of an enacting formula and two substantive provisions:
First, it sets out the citation and commencement (Section 1). Second, it provides the specific exemption from a particular subsection of the Co-operative Societies Act (Section 2). There are no schedules, definitions, or additional procedural requirements in the extract provided; the operative content is contained entirely in the exemption clause.
Practitioners should note that the Order is made under section 97 of the Co-operative Societies Act. While the extract does not reproduce section 97, the structure indicates that section 97 confers a power on the Minister to exempt a co-operative society from specified provisions of the Act, typically to accommodate special circumstances or policy objectives.
Who Does This Legislation Apply To?
The Order applies to ITE Co-operative Society Ltd only. It is not a general exemption for all co-operative societies. The exemption is therefore person-specific (or society-specific) and tied to the society’s statutory treatment under the Act.
In terms of subject matter, the exemption applies only “in so far as” the relevant funds fall within the two categories described in section 2(a) and 2(b). Accordingly, even for ITE Co-operative Society Ltd, the exemption does not necessarily affect other aspects of winding up, distribution, or compliance under the Co-operative Societies Act. It is best read as a targeted modification to the financial destination rule in section 89(3).
Why Is This Legislation Important?
This Order is important because it affects the final disposition of money connected to a co-operative society’s winding up and deregistration. For lawyers advising on liquidation, dissolution, or the handling of residual and unclaimed funds, the destination of such funds can have material consequences for governance, reporting, and stakeholder expectations.
From a legal risk perspective, the Order reduces uncertainty for ITE Co-operative Society Ltd by expressly stating that certain amounts should be donated to the ITE Endowment Fund rather than transferred to the Co-operative Societies Liquidation Account. Without such an exemption, the default statutory mechanism under section 89(3) would likely control. The exemption therefore functions as a compliance “switch” that must be reflected in the society’s final accounts, distribution statements, and any liquidation documentation.
Practically, the Order also reflects a policy choice: redirecting residual and unclaimed funds to an educational endowment fund associated with the Institute of Technical Education (ITE). While the Order does not elaborate on the policy rationale, its narrow scope suggests that the legislative intent is to ensure that remaining value from the society is channelled to a designated public-purpose fund.
Finally, for practitioners dealing with timelines, the commencement date (27 December 2013) is relevant. If cancellation of registration or other triggering events occurred before commencement, questions may arise as to whether the exemption applies. Conversely, if the relevant events occurred after commencement, the exemption would be expected to govern the destination of the specified funds. Where timing is uncertain, counsel should review the factual chronology and the society’s statutory process records.
Related Legislation
- Co-operative Societies Act (Chapter 62) (including sections 88, 89(3), and the exemption power in section 97)
- Legislation Timeline (to confirm the correct version of SL 794/2013 as at the relevant date)
Source Documents
This article provides an overview of the Co-operative Societies (Exemption under Section 97) (No. 4) Order 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.