A resolution to expel a member from a co-operative must itself be 'to the effect of' the grounds specified in the expulsion rule; a bare resolution to expel, even if accompanied by a statement of grounds in the notice or discussion at the meeting, does not comply. Where the expulsion rule refers to a member having 'been found guilty' of detrimental conduct, a majority of the Court held this requires a two-stage process: a finding of guilt followed by a separate expulsion resolution. Dispute resolution clauses in co-operative rules do not prevent the passing of expulsion resolutions and do not provide a defence to proceedings; they provide only a ground for staying proceedings. Natural justice principles apply differently where the decision-maker is a general meeting rather than a committee or tribunal, and members cannot be disqualified from voting on grounds of bias.
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