OCBA - Active membership rules

Active membership rules

Primary Activity (section 114) - The rules must specify the primary activity or activities of the co-operative and specify the manner and extent to which a member is required to actively support the co-operative. This support is measured against the co-operative's primary activity (or a combination of primary activities) and members are obliged to use or support an activity or activities of the co-operative in order to retain the right to be a member, including the right to vote. Such activity level should be stated as a minimum requirement.

The co-operative must determine that the proposed active membership provisions:

are reasonable when considered in relation to the activities of the proposed co-operative as a whole and

whether the provisions are:
1. measurable
2. relatively succinct and
3. precise enough to enable an objective determination to be made as to whether a particular member is active or inactive.

However a non-trading co-operative may satisfy the requirements by providing that a member must pay a regular subscription in connection with the co-operative's primary activity.

Example of a primary activity of a non-trading artificial stock breeding co-operative in the dairy industry would be:

'In accordance with Part 6 of the Act:

a. the acquisition of semen and associated products for retail to members is a primary activity of the co-operative: and

b. a member shall pay a yearly subscription payable each year in order to establish active membership of the co-operative.'

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