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Legislative Assembly for the ACT: 2000 Week 3 Hansard (9 March) . . Page.. 724 ..

MR HUMPHRIES (continuing):

The Bill introduces cooperative principles and active membership requirements. It enables cooperatives to have wider corporate powers, facilitates cooperatives engaging in interstate membership and cross-border fundraising and trading, and establishes an adequate enforcement regime. It enhances the provisions relating to directors' duties and facilities and regulates takeovers, mergers, transfers of engagements, arrangements and reconstructions. The legislation - incidentally, Mr Speaker, it is referred to in the tabling speech as draft legislation, but it is not now in draft form; it is now being presented for debate - also allows for the winding-up of cooperatives and improves the requirements for disclosure to members when cooperatives are formed and when shares and debentures are issued.

The Bill allows for two types of cooperatives - trading and non-trading. A trading cooperative is one that allows returns or distributions on surplus or shared capital. Since the members receive pecuniary benefits from their involvement in the cooperative, they are entitled to an adequate disclosure regime. Non-trading cooperatives are traditional not-for-profit organisations. As members of this type of organisation receive no pecuniary benefit from their involvement in the cooperative, a less stringent disclosure regime will apply. Cooperatives will have a transition period of two years from the date of commencement of the Act to bring their rules and operations into conformity with the new legislation.

When the exposure draft Bill was tabled on 26 August 1999, I moved that the Bill be referred to the Standing Committee for the Chief Minister's Portfolio in accordance with the requirements of the Administration (Interstate Agreements) Act 1997. At that stage, there was a possibility that the consistent legislation would be supported by a formal agreement between governments. Debate on the motion was adjourned and has not resumed to date.

In practice, the consistent legislation has been achieved across the various jurisdictions by consensus. There is no proposal before the Standing Committee of Attorneys-General to proceed to a formal agreement. I believe that the Bill should therefore be introduced and considered in the normal manner. In the event that negotiations commence for an agreement, I will arrange for the relevant committee to be informed. I commend the Bill to the Assembly.

Debate (on motion by Mr Stanhope ) adjourned.

MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (10.38): Mr Speaker, I present the Interpretation Amendment Bill 2000, together with its explanatory memorandum.

Title read by Clerk.

MR HUMPHRIES: I move:

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