Share Redemption Fund
QUESTIONS & ANSWERS
1. Q: What is "Share Redemption Fund" and what is the purpose of the "Fund" ?
A: "Share Redemption Fund" is a special fund set up by the Board in 1992 in accordance with
the provisions of the By-laws. Allocation to the "Fund" is apportioned from the annual net profit
and Statutory Reserved Fund of KOJADI subject to approval of the AGM on recommendation
of the Board. The purpose of setting up the "Share Redemption Fund" is to cater for the needs
of members who wish to redeem their shares in the co-operative.
2. Q: How shall a member apply for the Share Redemption Fund ?
A: A member shall fill in the form of APPLICATION FOR SHARE REDEMPTION (MEM/R039)
2. Q: How shall a member apply for the Share Redemption Fund ?
A: A member shall fill in the form of APPLICATION FOR SHARE REDEMPTION (MEM/R039)
prescribed by the Board. The form can be obtained from KOJADI's office at 11th Floor,
Wisma MCA, Jalan Ampang, 50450 Kuala Lumpur or our local director or our delegate or local Area
Liaison Committee. Photostat copy of the form is acceptable, but such form should be clearly written
or typed and duly signed by the applicant.
3. Q: Are there any important points to draw attention of a member in filling up of the
application form ?
A: Yes, the member should read Section "E" carefully and ensure that all relevant document(s)
are enclosed when submitting the application form.
4. Q: Are there any rules governing the operation of the Fund ?
A: Yes, the Board has approved the "Rules of KOJADI's Share Redemption Fund" governing the
operation of the Fund. The Rules are attached together with the application form. Members
concerned are required to read the Rules before filling in the application form.
5. Q: Is there any method or system in the evaluation of applications ?
A: In order to implement the Fund in an orderly and systematic manner and also to be fair as far as
possible to the members concerned, a "Point System" has been adopted by the Board in its
evaluation of applications. Specific points will be given to an applicant based on various factors
such as duration of membership with KOJADI and age of the applicant etc. Applicants who meet
the minimum qualifying points will be approved to redeem their shares. Generally, the major
qualifying factors that command high points include : -
a) upon the death of the member; (application is to be made by nominee or legal representative)
b) upon attaining the age of 70 years or above in the case of a member who has been a member
of KOJADI for more than 10 years;
c) if the member is suffering from permanent disablement or prolonged / serious illness resulting
in his total loss of earning power; or
d) if the Board in its sole and absolute discretion decides that the member is in urgent financial
need.
6. Q: Will all valid applications be successful ?
A: This will depend on the number of valid applications and allocation to the Fund. Based on the
point-system above, the Board will decide the qualifying points and select successful applicants
at its sole discretion.
Unsuccessful applicants for the "Fund" need not re-apply, as their applications will be
automatically reconsidered at the next selection process.
7. Q: Is there a ceiling of the amount fixed for the share redemption fund ?
A: There is no ceiling of the amount of share redemption, all successful applications will receive full
3. Q: Are there any important points to draw attention of a member in filling up of the
application form ?
A: Yes, the member should read Section "E" carefully and ensure that all relevant document(s)
are enclosed when submitting the application form.
4. Q: Are there any rules governing the operation of the Fund ?
A: Yes, the Board has approved the "Rules of KOJADI's Share Redemption Fund" governing the
operation of the Fund. The Rules are attached together with the application form. Members
concerned are required to read the Rules before filling in the application form.
5. Q: Is there any method or system in the evaluation of applications ?
A: In order to implement the Fund in an orderly and systematic manner and also to be fair as far as
possible to the members concerned, a "Point System" has been adopted by the Board in its
evaluation of applications. Specific points will be given to an applicant based on various factors
such as duration of membership with KOJADI and age of the applicant etc. Applicants who meet
the minimum qualifying points will be approved to redeem their shares. Generally, the major
qualifying factors that command high points include : -
a) upon the death of the member; (application is to be made by nominee or legal representative)
b) upon attaining the age of 70 years or above in the case of a member who has been a member
of KOJADI for more than 10 years;
c) if the member is suffering from permanent disablement or prolonged / serious illness resulting
in his total loss of earning power; or
d) if the Board in its sole and absolute discretion decides that the member is in urgent financial
need.
6. Q: Will all valid applications be successful ?
A: This will depend on the number of valid applications and allocation to the Fund. Based on the
point-system above, the Board will decide the qualifying points and select successful applicants
at its sole discretion.
Unsuccessful applicants for the "Fund" need not re-apply, as their applications will be
automatically reconsidered at the next selection process.
7. Q: Is there a ceiling of the amount fixed for the share redemption fund ?
A: There is no ceiling of the amount of share redemption, all successful applications will receive full
redemption amount.
8. Q: How soon can a member get back his redemption sum if he is successful in his
application ?
A: Barring unforeseen circumstances, the successful member-applicant will be able to get back his
8. Q: How soon can a member get back his redemption sum if he is successful in his
application ?
A: Barring unforeseen circumstances, the successful member-applicant will be able to get back his
redemption sum within a month upon receipt of the “SRF Payment Advice” and relevant document
(eg. Original share certificate, etc) by the Society.