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Legislative Assembly for the ACT: 2002 Week 9 Hansard (21 August) . . Page.. 2639 ..

MR STANHOPE (continuing):

to strengthen the registrar's powers to undertake investigations and enforcement to ensure that the interests of cooperatives, their members and the public generally are protected.

These proposals form the basis of national core consistent provisions requested by the Commonwealth to be adopted by all participating states and territories to enable the rollback of the application of the Corporations Act to allow cooperatives to fully operate under state and territory legislation.

The bill is divided into parts and divisions. The first part of 20 parts deals with preliminary matters, including a statement of objectives for the bill. These objects are to:

(a) enable the formation, registration and operation of cooperatives; and

(b) promote cooperative philosophy, principles, practices and objectives; and

(c) protect the interests of cooperatives, their members and the public in the operations and activities of cooperatives; and

(d) ensure that the directors of cooperatives are accountable for their actions and decisions to the members of cooperatives; and

(e) encourage and facilitate self-management by cooperatives at all levels; and

(f) encourage the development, integration and strengthening of cooperatives at local, regional, national and international levels by supporting and fostering Territory, State and national peak organisations and cooperative instrumentalities.

The seven cooperative principles are set out in part 1 of the bill. In summary, these principles are voluntary association and open membership; democratic control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for the community. If there is a problem interpreting the bill in a particular situation, a construction which would promote cooperative principles is to be preferred to an interpretation that would not. The application of the Corporations Act to cooperatives, whether they operate within the ACT or interstate, is also clearly defined.

The bill, either by direct reference or by inclusion, has adopted many of the provisions of the Corporations Act. Part 2 of the bill provides for the formation of cooperatives, associations and federations of cooperatives. A cooperative may be either trading or non-trading, depending upon its rules. A trading cooperative is one that gives returns or distributions on share capital. A non-trading cooperative is one that does not give returns or distributions on surplus or share capital, other than the nominal value of shares, if any, at winding up. The division of types of cooperatives is to facilitate different levels of compliance with the legislation in relation to disclosure in fundraising activities. Non-trading cooperatives are the traditional not-for-profit organisations which exist for the purposes of community benefit rather than individual profit.

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