Rules
Model rules
Model rules and guidelines for their use are now available for the following classes of co-operatives:
- non-trading co-operatives without share capital,
- non-trading co-operatives with share capital, and
- trading co-operatives.
These model rules are designed to provide flexibility to suit individual co-operatives. An important feature of the model rules is that they act as a safety net. This means, if the rules for your co-operative do not provide for a matter that is dealt with in the model rules relating to that class of co-operative, the relevant provision of the model rules is deemed to be included in the rules of the co-operative.
The model rules comprise two parts: core rules and schedules.
The core rules are the text of the model rules. If any matter in the core rules does not suit the co-operative, changes should be set out in the appropriate schedule. Under no circumstances are those changes to be incorporated into the core rules.
The schedules will set out the information that is specific to the co-operative, including any modification to the core rules.
The guidelines for using the model rules contain information to assist in completing the model rules.
At this stage, it is not intended to issue model rules specifically for non-trading co-operatives that are housing co-operatives or for non-trading co-operatives that are registered clubs (see Standard rules).
New co-operatives
If a new co-operative of a particular class wishes to adopt rules that are different to the model rules applying to that class of co-operative, the Alterations to model rules table in RTF format (size: 12k) must be completed and lodged with the formation disclosure statement and rules for approval.
Existing co-operatives
Existing co-operatives that intend to amend their rules are encouraged to consider whether the relevant model rules are suitable for the co-operative.
Existing co-operatives should compare their current rules with the relevant model rules to determine whether the model rules deal with any matter that is not covered by the co-operative's rules. The co-operative should consider altering its rules to make provision for, or to specifically exclude, such matter.
The model rules may be downloaded below.
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Non-trading non-share model rules
- schedules (RTF format, size: 49k)
- core rules (PDF format, size: 75k)
- guidelines (PDF format, size: 19k)
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Non-trading share model rules
- schedules (RTF format, size: 53k)
- core rules (PDF format, size: 94k)
- guidelines (PDF format, size: 19k)
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Trading model rules
- schedules (RTF format, size: 55k)
- core rules (PDF format, size: 88k)
- guidelines (PDF format, size: 19k)
Standard rules
Standard rules have been developed by the Registry for use by housing co-operatives and co-operatives that are also registered clubs.
Housing co-operative rules
These rules are specifically designed for co-operatives that provide community housing and are associated with the Department of Community Housing.
- Non-trading share housing co-operative rules (RTF format, size: 543k)
- Non-trading non-share housing co-operative rules (RTF format, size: 625k)
Registered club rules
These rules only apply to existing co-operatives that are registered as clubs under the Registered Clubs Act 1976, as co-operatives are no longer able to obtain registration under the Registered Clubs Act 1976 (see section 10 of that Act).
- Non-trading share co-operative that is also a club (RTF format, size: 540k)
- Non-trading non-share co-operative that is also a club (RTF format, size: 569k)
Conversion to non-share
Prior to 1992 all co-operatives were required to have shares, however, changes to the Co-operatives Act 1992 have removed the requirement for non-trading co-operatives to have share capital. Shares generally have no real purpose or relevance in relation to non-trading co-operatives.
As such a non-trading co-operatives with shares may convert to a non-trading co-operative without shares by an appropriate alteration to its rules and by complying with the notification requirements specified in the Act. In some cases, approval of the Co-operatives Council is required.
The benefits of being a co-operative without share capital are:
- there is no requirement to keep a register of shares and therefore no requirement to keep track of the number of share held by each member,
- there is no requirement to remember to allocate shares to a person when they become a member of the co-operative, and
- there is no share capital to be refunded when a person ceases to be a member.
For information on how to convert to a co-operative without share capital, please contact the Rules Branch of the Registry of Co-operatives & Associations.
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