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Method

Special Resolution
Pursuant to section 108 of the Act, the Rules of a co-operative cannot be altered unless the alterations are approved by a special resolution, unless the Act otherwise provides. Sections 187(1)(a) and 188(1) of the Act define a special resolution (for this purpose) as follows:

'a special resolution is a resolution of a co-operative that is passed by a two-thirds majority of the members who, being entitled to do so, vote in person or (if proxies are allowed) by proxy at a general meeting of members, vote in favour of the resolution.'

General Meeting of Members
Alterations to the rules may be undertaken by members in general meeting, whether it be at an annual general meeting or special general meeting as long as the requirements of the Act have been met. If there is an inconsistency between a provision of the Act and the rules of the co-operatives about the procedure for altering the co-operatives rules, the provision of the Act prevails to the extent of the inconsistency.


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