22Requirements 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 (ii) to do anything necessary to have the proposed co-operative registered.

Co-operatives (National Uniform Legislation) Act 2015 39 (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. (4) Each co-operative forming a proposed co-operative group may be represented at the formation meeting by one person. (5) An approval under subsection (2) may be given in relation to a particular co-operative or class of co-operatives or to all Division 3 Initial approval of rules and formation disclosure 23 Submission of draft rules and draft formation disclosure (1) The following documents must be submitted to the Registrar before the formation meeting: (a) a draft of the rules proposed for the co-operative (including active membership provisions); (b) in the case of: (i) a distributing co-operative – a draft formation disclosure statement for the co-operative; or (ii) a non-distributing co-operative – a draft formation disclosure statement for the co-operative if the Registrar so directs under subsection (2)(a);

Co-operatives (National Uniform Legislation) Act 2015 40 (c) a written notice of intention to apply for registration as a (2) The Registrar may by written notice direct that: (a) a draft formation disclosure statement for a proposed non-distributing co-operative must be submitted to the (b) a formation disclosure statement approved under section 25 must be presented to the formation meeting for the (3) The notice under subsection (2) is to be given to the person who submitted notice of intention to apply for registration as a co-operative and must specify the time by which the draft formation disclosure statement must be submitted to the Registrar. 24 Provisions relating to and approval of rules (1) This section applies to draft rules for a co-operative required to be submitted to the Registrar under section 23. (2) The rules must: (a) be in accordance with section 56; and (b) be in a form that may reasonably be approved. (3) If the rules do not make provision for any matter required by Schedule 1, the Registrar may approve the relevant provisions of the model rules as rules of the co-operative. (4) The Registrar may: (a) approve the rules as submitted; or (b) approve different rules to those submitted; or (c) refuse to approve the rules; or (d) require the person submitting the draft rules to give the requires, and then act under paragraph (a), (b) or (c). (5) Subject to subsection (6), the Registrar approves of the rules by giving written notice of the approval of the rules to the person who submitted the draft rules to the Registrar.