New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 233A

233A Management contracts

(cf Vic Act s 233)

(1) In this section, "management contract" means a contract or other arrangement under which:

(a) a person who is not an officer of the co-operative agrees to perform the whole, or a substantial part, of the functions of the co-operative, whether under the control of the co-operative or not, or

(b) a co-operative agrees to perform the whole or a substantial part of its functions:

(i) in a particular way, or

(ii) in accordance with the directions of any person, or

(iii) subject to specified restrictions or conditions.

(2) A co-operative must not enter into a management contract unless that contract has first been approved by special resolution.

(3) A management contract entered into in contravention of subsection (2) is void.