Victorian Consolidated Legislation

Co-operatives Act 1996 - SCHEDULE 1

MATTERS FOR WHICH RULES MUST MAKE PROVISION
1 Requirements for all co-operatives The rules of all co-operatives must set
out or make provision for each of the following-
1. The name of the co-operative;
2. Active membership provisions (within the meaning of Part 6);
3. The mode and conditions of admission to membership, and the payment to be
made or the share or interest to be acquired before rights of membership are
exercised;
4. The rights and liabilities of members, and of the estates of deceased
members, and the rights and liabilities of representatives of members under
bankruptcy or mental incapacity;
5. The circumstances in which members may be expelled or suspended, and the
rights and liabilities of expelled and suspended members;
6. The circumstances in which membership ceases;
7. Any charges or subscriptions which are to be payable by a member to the
co-operative;
8. The circumstances in which fines and forfeitures may be imposed on members
of the co-operative, and the amount of the fines, not exceeding the prescribed
maximum amount;

9. The grievance procedures for settling disputes under the rules between the
co-operative and any of its members as defined in section 88, or between a
member and any other member;
10. The restrictions, if any, on the powers of the co-operative and the board;
11. The number of directors, the qualification of directors, and the manner of
electing, remunerating and removing directors and filling a vacancy, the
period for which directors are to hold office, and whether directors are to
retire by rotation or otherwise and for the holding of annual elections;
12. The quorum for meetings, and the procedure at meetings, of the board;
13. The device, custody and use of the seal of the co-operative;
14. The manner in which the funds of the co-operative are to be managed, and
in particular the mode of drawing and signing cheques, drafts, bills of
exchange, promissory notes, and other negotiable instruments for and on behalf
of the co-operative;
15. Provision for the custody of securities belonging to the co-operative;
16. The manner in which debentures may be transferred;
17. The date on which the financial year of the co-operative concludes;
18. Provision for the financial statements of the co-operative to be audited
annually or more frequently and the manner of appointment of the auditor;

19. The manner in which any loss which may result from the transactions of the
co-operative is to be provided for;
20. The manner of calling general and special meetings, the requisite notices
of meetings, and the quorum for meetings, of the co-operative;
21. The procedure at meetings of the co-operative, including the rights of
members in voting at meetings, the manner of voting, and the majority
necessary for carrying resolutions;
22. The method of conducting postal ballots, including special postal ballots,
including the sending and lodgment of information and votes by facsimile or
electronic means;
23. The manner of altering the rules;
24. The manner in which the co-operative may be wound-up;
25. Any matters that may be prescribed, whether in addition to or in
substitution for any matter specified in this clause;
26. Any other matters that to the co-operative appear necessary or desirable.
2 Additional matters-co-operatives with share capital In addition to the
matters specified in clause 1, the rules of a co-operative with a share
capital must set out or make provision for each of the following-
1. The nominal value of each share in the co-operative;
2. The amount of the contingent liability, if any, attaching to shares;

3. The terms on which shares, not including bonus shares, but including
shares, if any, with a contingent liability attached to them are to be issued;
4. The periodic subscriptions by which or the manner in which shares are to be
paid for;
5. In the case of a trading co-operative, the manner in which any surplus may
be distributed;
6. The allocation of a deficiency on the winding up of a co-operative;
7. Provision for the forfeiture of shares on expulsion or on failure to pay
any subscription or call, the extent to which members whose shares have been
forfeited are to remain liable for any amount still unpaid in respect of them,
and the sale or cancellation of forfeited shares;
8. The manner in which shares may be transferred;
9. Any matters that may be prescribed, whether in addition to or in
substitution for any matter specified in this clause.
3 Additional matters-non-trading co-operatives In addition to the matters
specified in clauses 1 and 2, the rules of a non-trading co-operative must
provide-
1. That there must be no return or distribution on surplus or share capital to
members other than the nominal value of shares (if any) at winding up;
2. For the manner of distribution of the surplus property at winding up.
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