South Australian Consolidated Acts

CO-OPERATIVES ACT 1997 - SECT 16

16—Formation meeting

        (1)         Before a proposed co-operative (other than an existing body corporate) can be registered, a formation meeting must be held in accordance with this section.

        (2)         At the formation meeting—

            (a)         in the case of a proposed trading co-operative, a disclosure statement approved under section 17 must be presented to the meeting; and

            (b)         the proposed rules of the co-operative approved under section 18 in respect of the proposed co-operative, and including active membership provisions in accordance with Part 6, must be passed by two-thirds of the proposed members of the proposed co-operative attending the meeting; and

            (c)         the proposed members of the proposed co-operative must sign the application for membership which must be in a form approved by the Commission; and

            (d)         the proposed members must elect the first directors of the proposed co-operative in accordance with the proposed rules; and

            (e)         the proposed members must authorise a person—

                  (i)         to apply to the Commission for registration of the proposed co-operative; and

                  (ii)         to do any act or thing necessary to have the proposed co-operative registered.

        (3)         The formation meeting must be held by—

            (a)         not less than 2 suitably qualified co-operatives, in the case of an association; and

            (b)         not less than 2 suitably qualified associations, in the case of a federation; and

            (c)         not less than 5 persons, or if a lesser number than 5 is prescribed by regulation, not less than the prescribed number of persons, suitably qualified to be members of the proposed co-operative in the case of any other co-operative.

        (4)         For the purposes of subsection (3), a person is suitably qualified to be a member if—

            (a)         there are reasonable grounds to believe the person will be an active member of the proposed co-operative; and

            (b)         in the case of a natural person, the person has attained the age of 18; and

            (c)         the person satisfies any other requirements for membership set out in the proposed rules.

        (5)         Each co-operative forming a proposed association and each association forming a proposed federation may be represented at the formation meeting by one person.