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Standard fact sheet.

Drafting first disclosure statement 

What is a disclosure statement?

Every proposed distributing co-operative must prepare a disclosure statement to inform prospective members about the nature and extent of their financial involvement or liability as a member of the co-operative. Non-distributing co-operatives are not required to prepare a formation disclosure statement except in limited circumstances where the operations of the proposed co-operative may result in a significant financial risk to members. This must include the following information:

  • the estimated costs of formation
  • the active membership provisions of the proposed co-operative
  • the rights and liabilities attached to shares in the proposed co-operative
  • the capital required for the co-operative at the time of formation
  • the projected income and expenditure of the co-operative for its first year of operation
  • information about any contracts required to be entered into by the co-operative, and
  • any other information that NSW Fair Trading directs to be included.

Who can prepare the disclosure statement?

Depending on the complexity of the proposed co-operative, financial or legal advice may be required  to assist in preparing the disclosure statement.

A draft disclosure statement and guide to completing the formation disclosure statement is available:

Approving the disclosure statement

The proposed disclosure statement and proposed rules must be submitted to Fair Trading’s Registry Services, together with an Application to approve co-operative rules and formation disclosure statement (form C1) for approval. Fair Trading will liaise with the applicant if additional information is required or the statement requires amendment.

Once approved by Fair Trading, the relevant documents will be returned to allow the proposed co-operative to proceed with the formation meeting.

Further information

For further information please contact:

Registry Services
PO Box 22
Bathurst  NSW  2795
Telephone: 6333 1400
Freecall: 1800 502 042

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