Statute Details
- Title: Co-operative Societies (Exemption under Section 97) Order 2015
- Act Code: CSA1979-S704-2015
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Co-operative Societies Act (Chapter 62)
- Enacting Authority: Minister for Culture, Community and Youth
- Order Number: S 704
- Date Made: 12 November 2015
- Date of Commencement: 16 November 2015
- Status: Current version as at 27 March 2026
- Key Provision: Exemption from section 89(3) of the Co-operative Societies Act
What Is This Legislation About?
The Co-operative Societies (Exemption under Section 97) Order 2015 is a targeted exemption order made under the Co-operative Societies Act (Chapter 62). In plain terms, it allows a specific co-operative society—ExxonMobil Employees’ Co-operative Limited—to handle certain remaining and unclaimed funds differently when its registration is cancelled.
Under the general scheme of the Co-operative Societies Act, when a co-operative society is cancelled, any surplus or unclaimed monies are not simply distributed at the society’s discretion. Instead, the Act directs how such funds should be dealt with, including transfer to a designated liquidation account. This Order creates a narrow exception to that default rule for the named society and for specified categories of money.
Practically, the Order ensures that (i) money remaining after the society applies its funds to the purposes specified in section 88 of the Act, and (ii) sums unclaimed after a defined period following cancellation of registration, are donated to a charitable institution—the Children’s Cancer Foundation—rather than being transferred to the Co-operative Societies Liquidation Account.
What Are the Key Provisions?
Section 1: Citation and commencement provides the formal identity of the instrument and when it takes effect. The Order may be cited as the Co-operative Societies (Exemption under Section 97) Order 2015 and comes into operation on 16 November 2015. For practitioners, this matters because the exemption only applies from the commencement date; however, the Order is framed to govern the treatment of funds in the context of cancellation and the statutory end-of-life process for the society.
Section 2: Exemption from section 89(3) of Act is the substantive provision. It states that ExxonMobil Employees’ Co-operative Limited is exempt from section 89(3) of the Co-operative Societies Act, but only “insofar as” the exemption relates to two specific categories of funds.
First, the exemption applies to “any moneys remaining after the application of its funds to the purposes specified in section 88 of the Act”. Section 88 (within the broader Co-operative Societies Act framework) sets out the purposes to which a society’s funds must be applied before any residual amounts are dealt with. The Order therefore preserves the statutory priority of applying funds to those section 88 purposes. Only after those mandated applications are completed does the exemption operate for the remaining balance.
Second, the exemption applies to “any sums unclaimed after 2 years from the date of cancellation of its registration”. This reflects a statutory “waiting period” concept: unclaimed sums are held for a period after cancellation, allowing eligible persons to come forward. After two years, the default statutory destination would ordinarily apply. The Order changes that destination for this named society by redirecting such unclaimed sums to a charitable beneficiary.
In both cases, the Order specifies the alternative destination: the relevant monies “are to be donated to the Children’s Cancer Foundation, instead of being transferred to the Co-operative Societies Liquidation Account.” This is the core legal effect. It modifies the financial outcome of the liquidation/cancellation process for the society by substituting a charity donation for the liquidation account transfer.
Notably, the exemption is not a general reallocation of all funds. It is limited to the two categories described above and limited to the named society. This narrow tailoring is typical of exemption orders: they address a specific policy or practical concern without undermining the general statutory framework.
How Is This Legislation Structured?
The Order is extremely concise and consists of only two operative provisions:
(1) Enacting formula and title (including the authorising power under section 97 of the Co-operative Societies Act); and
(2) Two sections:
- Section 1 (Citation and commencement)
- Section 2 (Exemption from section 89(3) of the Act)
There are no schedules, definitions, or additional procedural requirements in the text provided. The instrument therefore functions as a direct legal override to the specified statutory rule, for the specified society, and for the specified categories of funds.
Who Does This Legislation Apply To?
The Order applies only to ExxonMobil Employees’ Co-operative Limited. It does not create a class-based exemption for all co-operative societies, nor does it apply to other societies that might face cancellation or liquidation.
In terms of subject matter, the exemption is triggered in the context of the society’s winding up/cancellation process governed by the Co-operative Societies Act—specifically where section 89(3) would otherwise require transfer of certain monies to the Co-operative Societies Liquidation Account. The Order modifies that outcome by requiring donation to the Children’s Cancer Foundation for the two specified categories of funds.
Why Is This Legislation Important?
Although the Order is short, it is legally significant because it alters the statutory destination of funds at a sensitive point in a co-operative society’s lifecycle—when registration is cancelled and residual or unclaimed monies must be dealt with under strict statutory rules. For lawyers advising co-operative societies, liquidators, trustees, and compliance teams, the key takeaway is that statutory defaults can be overridden by specific exemption orders, but only within the narrow boundaries set out in the instrument.
From an enforcement and compliance perspective, the Order reduces uncertainty for the named society by clarifying that certain monies should be donated to a specified charity rather than transferred to the liquidation account. This can affect documentation, accounting treatment, and the steps required to close out the society’s affairs. Practitioners should ensure that the society’s final accounts and winding-up records reflect the exemption accurately—particularly the distinction between:
- funds remaining after application to section 88 purposes, and
- unclaimed sums after the two-year period from cancellation.
From a governance and stakeholder perspective, the Order also reflects a policy choice: instead of routing residual/unclaimed funds to a general liquidation account, the funds are directed to a charitable foundation. This can be relevant in negotiations with members, in communications about winding up, and in ensuring that the society’s final disposition aligns with both statutory requirements and any legitimate expectations of stakeholders.
Finally, the Order illustrates the practical operation of the Minister’s exemption power under section 97 of the Co-operative Societies Act. For practitioners, this is a useful precedent for how exemptions are drafted: they are typically (i) society-specific, (ii) limited to particular statutory provisions, and (iii) confined to defined categories of money. Any future exemption request would likely need to be similarly precise to withstand scrutiny and to avoid unintended disruption to the statutory liquidation framework.
Related Legislation
- Co-operative Societies Act (Chapter 62) (including sections 88, 89(3), and the exemption power in section 97)
- Co-operative Societies (Exemption under Section 97) Order 2015 (S 704/2015)
Source Documents
This article provides an overview of the Co-operative Societies (Exemption under Section 97) Order 2015 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.