Bill awaiting assent

The Co-operatives Legislation Amendment Bill 2001 has recently passed through both houses of the NSW Parliament. The Bill, when enacted, will amend the Co-operatives Act 1992 to adopt amendments to the core consistent provisions agreed upon by the states and territories. These provisions relate to:

• the procedure for the approval of disclosure statements,
• the provision of information to persons intending to become members,
• the payment of regular subscriptions by members,
• the repayment of money paid up on share capital and amounts due in respect of expelled members and members who have their membership cancelled, other than for inactive membership;
• the adoption of certain provisions of the Corporations Act 2001 of the Commonwealth under the Co-operative Act in relation to an invitation for, or offer of, shares to non members,
• the holding of a co-operative's first annual general meeting
• the recording minutes of meetings
• the appointment of secretaries
• contents of annual reports of co-operatives,
• the appointment of independent directors;
• quorums for boards with independent directors;
• notification of changes of registered office and registered name by foreign co-operatives; and
• approval procedures for merger or transfer of engagements by interstate co-operatives with NSW Co-operatives.

The Bill also clarifies the position regarding co-operatives formed before 1 December 1997, being able to accept deposits from their members without the issue of debentures. The Bill also precludes a person under the age of 18 from voting at meetings of a co-operative, thus restoring the pre-1997 position regarding the voting of minors.

A copy of the Bill may be downloaded in an Acrobat format from http://www.parliament.nsw.gov.au website