A co-operative's rules should support clear communication and help the co-operative be inclusive, fair and open with its members.
The rules act as a contract between the co-operative and:
- each member
- each director, chief executive officer and secretary
- between members.
A co-operative’s rules outline:
- the purpose of the co-operative
- rights and responsibilities of committee and members
- financial responsibilities
- how problems and complaints are handled
- how to change rules
- powers of members and the board
- procedures for meetings and how decisions are made.
Use the model rules to help you understand your legal responsibilities and to include what is relevant for your co-operative.
Changing the rules
Rules can be changed by:
- special resolution at a general meeting
- post ballot if the rules allow for it
- the board, if directed by Consumer and Business Services (CBS).
Before you call a meeting
CBS must approve proposed changes to rules that cover:
- active membership
- moving from a non-distributing to a distributing co-operative
- a registered club, which restricts the voting rights of some members.
How to apply
- Application form
Complete and sign the Application for prior approval of rule amendment/s – form C11 (282.KB PDF)
- Supporting evidence
Attach a draft of the proposed changes and a statement showing the reasons for the changes to your application.
- Lodgement
Post
CBS Licensing and Registration
GPO Box 1719
Adelaide SA 5001
Email
associations@agd.sa.gov.au
Meeting to change the rules
You must give members at least 21 days’ notice of a general meeting to change the rules. The notice must state:
- the changes
- the reason for proposing the changes
- how the changes will affect members and the co-operative.
If the changes relate to active membership, they must also:
- state if the member can vote
- include the full text of the proposed resolution
- include a copy of the Act about cancelling memberships when inactive – section 156 CNL.
At least 60% of eligible voters need to pass the resolution for it to be approved (unless existing rules state a higher percentage).
Registering the changes
You need to register the changes with CBS before they can take effect.
- Application
Complete the Application to register rule amendment/s (form C10) (285KB PDF) – signed by an authorised person for the co-operative.
- Supporting evidence
Attach a copy of the rules, including the changes, to your application.
- Lodgement
Post
CBS Licensing and Registration
GPO Box 1719
Adelaide SA 5001
Email
associations@agd.sa.gov.au
