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.

Example 1 of a primary activity of a trading fruit packing co-operative could be:

'In accordance with Part 6 of the Act;

the acquisition of fruit from its members and the packing of fruit and the manufacture of associated products is a primary activity of the co-operative: and
a member shall provide a minimum of tonnes of fruit to the co-operative in each financial year in order to establish active membership of the co-operative.'

Example 2 of a primary activity of a retail trading co-operative within the hardware retail industry could be:

'In accordance with Part 6 of the Act;

the operation of a trading store providing goods and services to its members is a primary activity of the co-operative: and
a member shall purchase goods and/or services from the co-operative to the value of a minimum of $ per month in order to establish active membership of the co-operative.'

Relevant considerations to be addressed by the co-operative include:

How the board of the co-operative has determined that the proposed active membership provisions:

are reasonable when considered in relation to the activities of the co-operative as a whole; and
satisfy the requirements that a member must utilize an activity of the co-operative in connection with the carrying on of the co-operative's proposed primary activity.

Whether the provisions are:

relatively succinct and
precise enough to enable an objective determination to be made as to whether a particular member is active or inactive.

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