Creamery Act, 1928

Milk supply from shareholder of another society.

10.—(1) Where a society is required by or under this Act or is bound by an agreement validated by this Act to issue shares to any person and does issue such shares accordingly then, whether such person does or does not take such shares, it shall not be lawful without the consent of the Department signified in writing for any other society to take any supply of milk from such person.

(2) If a society takes a supply of milk from any person in contravention of this section it shall be lawful for the Department to serve by post on such society a notice in writing requiring such society to cease to take a supply of milk from such person and if such society after the expiration of seven days from the service of such notice takes a supply of milk from such person such society shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding ten pounds together with a further fine not exceeding two pounds for every day during which the offence continues.

(3) When the Department is satisfied that any person to whom debt shares have been issued by a society under the authority of section 5 of this Act would suffer any injustice or unreasonable hardship by supplying or continuing to supply milk to such society, the Department may authorise any other society to accept a supply of milk from such person.

(4) A society which has been authorised by the Department to accept a supply of milk from a person to whom debt shares have been issued by another society under this Act shall be liable for the payment to the Company of such portion of the debt in respect of which such debt shares were issued as the Department shall determine, and a corresponding deduction shall be made from the balance of such debt remaining due to the Company by the society by which such debt was incurred.

(5) The uncalled balance of debt shares issued by a society to a person in respect of whose milk supply an authorisation is given by the Department to any other society under sub-section (3) of this section shall be cancelled, such cancellation to take effect as from the date on which such authorisation was given.

(6) A society which obtains a supply of milk on the authorisation of the Department as provided by sub-section (3) of this section may issue and such society if and when so required by the Department shall issue to the person from whom such supply is obtained such number of shares of the nominal value of one pound each as the Department shall certify to be equal to the nearest pound in total nominal amount to the uncalled balance of the debt shares in respect of which such person's liability was cancelled in accordance with sub-section (5) of this section.