149Factors and considerations for deciding primary activities and other matters

149 Factors and considerations for deciding primary activities and other matters

149 Factors and considerations for deciding primary activities and other matters

(1) The board of a co-operative must ensure the relevant factors and considerations are taken into account in deciding—

(a) which of the activities of a co-operative are its primary activities; and

(b) the way and extent to which a member is required to use or support an activity of, or maintain a relationship or arrangement with, a co-operative, for carrying on a primary activity of the co-operative, to establish active membership of the co-operative.

(2) The relevant factors and considerations are—

(a) the primary activity or (if more than one) the primary activities taken together must form the basic purpose for which the co-operative exists and a significant contribution to the business of the co-operative; and

(b) the way and extent of required utilisation, support, relationship or arrangement should be reasonable when considered in relation to the activities of the co-operative as a whole; and

(c) any other factors and considerations prescribed by the National Regulations.

(3) The National Regulations may—

(a) provide for the things to be taken into account in deciding whether an activity makes a significant contribution to the business of the co-operative; and

(b) state minimum percentages of turnover, minimum amounts of income or minimum amounts of business necessary to constitute that significant contribution.

(4) Factors and considerations may be prescribed by the National Regulations so as to apply to co-operatives generally or to a specified class of co-operatives.

(5) Nothing in this section limits the right of active members other than the board of the co-operative to propose an active membership resolution.