OCBA - Membership

Minimum number

A co-operative must have at least five members. (s69)

Liability

A member is liable for any unpaid amount on shares held by the member, and any charges payable under the rules of the co-operative. (s71)

Qualification

A person cannot be admitted to membership unless there are reasonable grounds for believing the person will be an active member. (s62) See active membership provisions

Information for prospective members

Persons who intend to become members must be provided with a copy of the rules, special resolutions applicable to the member, and the last annual report. (s72)

Persons under 18

A person under 18 years is not competent to hold any office in a co-operative, and a member under 18 years is not entitled to vote. (s64)

Representatives of bodies corporate

A body corporate member may appoint a person to represent it for its membership, unless the person is currently a member or representative of another body corporate member, subject to other restrictions in s65.

Cessation

Membership ceases if a member becomes bankrupt, unless contrary provision is made in a co-operative's rules. A person ceases to be a member of a co-operative that has share capital if the person ceases to hold shares. (s67, 68)

Expulsion

An expelled member must be paid the amount paid up on shares held less any amounts owed to the co-operative, within 12 months of expulsion. However, if it would adversely affect the co-operative's financial position, or the board and the former member agree, the liability may be converted to debt, or appropriated as a donation to the co-operative but only if the former member consents in writing. Any amounts converted to debt must be repaid by the co-operative within 10 years (or any shorter period required by the rules). There must be a proportionate reduction in payment if the last balance sheet discloses a loss or deficiency. (s77)

Disputes

The rules must include a procedure for dealing with disputes among members and between a member and the co-operative. A member may apply to the Supreme Court for an order declaring and enforcing the rights and obligations of members or of the co-operative. The Court may refuse to make an order if it is of the opinion, e.g. that the issue is trivial. (Division 4)

Oppressive conduct

A member may apply to the Supreme Court for an order if the member believes that the affairs of the co-operative are being conducted in a manner that is oppressive, or unfairly prejudicial to, or unfairly discriminatory against, a member, or in a manner that is contrary to the interests of the members as a whole. This does not apply in respect of anything done in relation to the active membership provisions see active membership provisions. (Division 5)

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