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cooperatives_and_associations
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Co-operatives rules 

Model rules
Registered club rules
Conversion to non-share

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.

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.

These documents will continue to be used until the introduction of the Co-operatives National Law during 2013.

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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).

These documents will continue to be used until the introduction of the Co-operatives National Law during 2013.

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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 Registry Services.

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