22Requirements regarding formation meeting

22 Requirements regarding formation meeting

22 Requirements regarding formation meeting

(1) At the formation meeting for a proposed co-operative—

(a) the proposed rules of the co-operative approved under section 24 for the proposed co-operative, including active membership provisions, must be passed by two-thirds of the proposed members of the proposed co-operative attending the meeting; and

(b) in the case of—

(i) a proposed distributing co-operative; or

(ii) a proposed non-distributing co-operative that is the subject of a direction under section 23 (2) (a);

a formation disclosure statement approved under section 25 must be presented to the meeting; and

(c) the proposed members of the proposed co-operative must sign the application for membership; and

(d) the proposed members must elect the first directors of the proposed co-operative under the proposed rules; and

(e) the proposed members must authorise a person—

(i) to apply to the Registrar for registration of the proposed co-operative; and

(ii) to do anything necessary to have the proposed co-operative registered.

(2) The formation meeting must be held by—

(a) in the case of a co-operative group—not less than 2 co-operatives suitably qualified to be members of the proposed co-operative group; or

(b) in the case of any other co-operative—not less than 5 persons, or if a lesser number than 5 is approved by the Registrar not less than the approved number of persons, suitably qualified to be members of the proposed co-operative.

(3) For the purposes of subsection (2), a person (including a co-operative) is suitably qualified to be a member if—

(a) there are reasonable grounds to believe the person will be an active member of the proposed co-operative; and

(b) in the case of an individual—the person is an adult; and

(c) the person satisfies any other requirements for membership in the proposed rules.