Australian Capital Territory Consolidated Acts

COOPERATIVES ACT 2002 - SECT 119

    (1)     The board of a cooperative must ensure that the relevant factors and considerations are taken into account in deciding—

        (a)     which of the activities of a cooperative are its primary activities; and

        (b)     how, and to what extent, a member is required to use or support an activity of, or maintain a relationship or an arrangement with, a cooperative, in relation to the carrying on of a primary activity of the cooperative, to establish active membership of the cooperative.

    (2)     The relevant factors and considerations are—

        (a)     the primary activity (or, if there are 2 or more primary activities, the primary activities taken together) must constitute the basic purpose for which the cooperative exists and make a significant contribution to the business of the cooperative; and

        (b)     the requirements decided under subsection (1) (b) must be reasonable, when considered in relation to the activities of the cooperative as a whole; and

        (c)     any other factors and considerations prescribed by regulation.

    (3)     The regulations may—

        (a)     provide for the matters to be taken into account in deciding whether an activity makes (or activities make) a significant contribution to the business of the cooperative; and

        (b)     specify minimum percentages of turnover, minimum amounts of income or minimum amounts of business necessary to constitute that significant contribution.

    (4)     This section does not limit the right of active members, other than the board of the cooperative, to propose an active membership resolution.