The co-operative’s rules must include a grievance procedure for dealing with a dispute between:
- a member and another member (including a person who was a member not more than 6 months before the dispute occurred)
- a member and the co-operative.
The grievance procedure must allow for natural justice to be applied. A member may appoint any person to act on their behalf in the grievance procedure.
The rules have the effect of a contract between the co-operative and its members and any alleged breach of the rules should be dealt with according to the dispute resolution procedure.
How are disputes within a co-operative handled?
Resolving a dispute at the earliest opportunity is usually the simplest and most cost-effective way for all involved. If a dispute arises:
- Try to resolve the dispute directly with the parties involved.
- If this direct approach fails, then use the dispute resolution procedure in the co-operative’s rules. (The rules may require the parties to undertake a particular process where a dispute cannot be resolved directly with the co-operative.)
- If the matter remains unresolved, you could try an alternative dispute resolution method such as mediation or arbitration.
- A member or the co-operative can also apply to the Supreme Court of NSW for an order that declares or enforces the rights or obligations of the member or the co-operative.
A member or the co-operative may consider obtaining legal advice from a suitably qualified practitioner if the dispute cannot be resolved directly with the co-operative.
NSW Fair Trading
Fair Trading can only intervene in matters relating to alleged breaches of the Co-operatives National Law (NSW) including:
- continuing to operate whilst insolvent or unable to pay debts
- acting with intent to defraud or for any other fraudulent purpose
- failure to hold board meetings
- failure to hold an annual general meeting
- failure to maintain minutes of meetings
- failure to provide financial reports to members
- failure to lodge annual reports/annual returns.
Fair Trading does not:
- intervene in or conciliate disputes between members or between members and a co-operative
- provide legal advice (including an interpretation of a co-operative’s rules)
- intervene in or determine the validity of meetings or elections.
Where can I get assistance?
Legal assistance may be obtained from the following sources:
- a legal practitioner of your choice
- Legal Aid / Law Access NSW by visiting the Law Access NSW website
- Community Justice Centres on 1800 990 777 or visit the Community Justice Centres website
- your local Community Legal Centre, visit the Community Legal Centre website for a list of centres
- For help finding a private law firm visit the Law Society of NSW Solicitor Referral Service.
In addition, Justice Connect has free ‘self-help’ legal resources, including fact sheets and guides to assist incorporated associations and in limited circumstances, may be able to provide some legal assistance. Visit https://www.nfplaw.org.au/help
Need more information?
Registry and Accreditation
Free Call: 1800 502 042
PO Box 22
Bathurst NSW 2795