9Expulsion of members (CNL s117)

9 Expulsion of members (CNL s117)

9 Expulsion of members (CNL s117)

(1) A member may be expelled from the co-operative by special resolution to the effect:

(a) that the member has seriously or repetitively failed to discharge the member’s obligations to the co-operative under these rules or a contract entered into with the co-operative under section 125 of the Law; or

(b) that the member has acted in a way that has:

(i) prevented or hindered the co-operative in carrying out its primary activity or one or more of its primary activities; or

(ii) brought the co-operative into disrepute; or

(iii) been contrary to one or more of the co-operative principles as described in section 10 of the Law and has caused the co-operative harm.

(2) Written notice of the proposed special resolution must be given to the member at least 28 days before the date of the meeting at which the special resolution is to be moved, and the member must be given a reasonable opportunity of being heard at the meeting.

(3) At the general meeting when the special resolution for expulsion is proposed the following procedures apply:

(a) at the meeting, the member must be afforded a full opportunity to be heard and is entitled to call witnesses and cross-examine witnesses called against the member;

(b) if the member fails to attend at the time and place mentioned, without reasonable excuse, the member’s alleged conduct must be considered and the co-operative may decide on the evidence before it, despite the absence of the member;

(c) once the alleged conduct is considered, the co-operative may decide to expel the member concerned;

(d) the co-operative must not make a decision on the alleged conduct or on expulsion, except by vote by secret ballot of the members present, in person or represented by proxy or by attorney, and entitled to vote;

(e) a motion for the decision is not taken to be passed unless two-thirds of the members present, in person or represented by proxy or by attorney, vote in favour of the motion.

(4) Expulsion of one joint member means expulsion of all members holding membership jointly with the expelled member.