Subdivision 3 Special power of intervention

41   Intervention by Registrar

(1)  If the Registrar is of the opinion that:

(a)  a co-operative housing body has contravened this Act and, after being given written notice of the contravention by the Registrar, has allowed the contravention to continue or has again contravened this Act, or

(b)  a co-operative housing body is trading unprofitably or has an accumulated deficit in its accounts, or

(c)  the affairs of a co-operative housing body are being conducted in an improper or financially unsound way,

      the Registrar may, by written notice given to the body, place it under direction.

(2)  The Registrar may, by written notice given to the body, revoke the notice.

(3)  While the co-operative housing body is under direction, the Registrar may do all things that the Registrar considers necessary to ensure that the matter is remedied.

(4)  Without limiting subsection (3), the Registrar may:

(a)  order an audit of the affairs of the co-operative housing body by an auditor chosen by the Registrar at the expense of the body, or

(b)  direct the co-operative housing body to change any practices that in the Registrar’s opinion are undesirable or unsound, or

(c)  direct the co-operative housing body to cease or limit the raising or lending of funds or the exercise of other powers, or

(d)  remove a director, or all the directors, of the co-operative housing body from office and appoint another director or other directors, or

(e)  remove any auditor of the co-operative housing body from office and appoint another auditor, or

(f)  give any other directions as to the way in which the affairs of the co-operative housing body are to be conducted or not conducted.

(5)  If the co-operative housing body:

(a)  fails, without reasonable excuse, to comply with a direction given or requirement made under this section to the extent that the co-operative housing body is capable of doing so, or

(b)  without reasonable excuse, obstructs, hinders or resists the exercise of the Registrar’s powers under this section,

      the co-operative housing body and any officer of the co-operative housing body who is in default each commit an offence.

Maximum penalty: 50 penalty units or imprisonment for 12 months, or both.

(6)  A director or auditor appointed under this section holds office for such term as the Registrar directs.