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Legislative Assembly for the ACT: 2002 Week 9 Hansard (21 August) . . Page.. 2638 ..

MR STANHOPE (continuing):

the Cooperatives Bill 2000. At that time, debate on the bill was adjourned until the former government brought forward a second bill in August 2001.

While the legislation was not debated at that stage, this was not because of any particular controversy in relation to the proposal. Most other Australian jurisdictions have enacted new legislation reforming their cooperatives legislation through a comprehensive set of core consistent provisions. Indeed, this legislation is part of a process whereby each state and territory, by consensus, has moved or is moving towards consistent cooperative legislation.

The purpose of the bill is to provide a legislative framework for the formation, registration and management of cooperatives which enables flexibility in the operation of and promotes the development of cooperatives.

However, because of the importance of this proposed legislation and the fact that it introduces new and significant changes to a number of existing provisions which have been in the current legislation for a considerable period of time, I will take this opportunity to detail some of the important policy issues contained in the bill. The principal policy intentions of the new Cooperatives Bill are:

to provide that incorporation as a cooperative be a right available to any group wishing to have the benefits of cooperation and willing to abide by traditional cooperative principles

to enable cooperatives to have wider corporate powers by providing them with the powers of a natural person, a situation equivalent to corporations. (Such powers are to be exercised within traditional cooperative principles.)

to maintain the principle of active member control of cooperatives, including "one member, one vote", as central to the operation and control of cooperatives

to provide for cooperatives to have similar general standards to those applying to corporations in regard to dealings with or reporting on activities concerning third parties (This includes providing for similar general standards for directors of cooperatives as those applying to directors of similar-sized corporations.)

to provide cooperatives with a clearer range of alternatives in regard to determining the optimal capital structure to best service the needs of the members (This will ensure that cooperatives remain competitive with other forms of incorporation.)

to enable cooperatives to merge, transfer engagements or be wholly acquired, but only if the substantial majority of active members, when fully informed, desire such a course (These options will be available regardless of whether the other party is local or interstate.)

to provide for the cooperative legislation to recognise specifically the separate registration and operation of interstate cooperative organisations in this jurisdiction; and

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