Hong Kong Regulations

CO-OPERATIVE SOCIETIES RULES - RULE 55

Sales of shares of members in default

The committee may, in default of payment by any member indebted to the
registered society to an amount not less than three-fourths of the sum paid up
for the time being on any transferable share held by him, sell, transfer and
register in the books of the registered society such share to any person
entitled to hold the same under the rules or by-laws for the best price
obtainable therefor, and apply the proceeds in or towards the discharge of the
debt so due and of any expense incurred in or about the same, paying over the
balance (if any) to the member, without being responsible for any loss
occasioned thereby, and the defaulting member shall cease to have any further
claim in respect of such share.