Co-operatives National Law (NSW)

A co-operative may impose a fine on a member for an infringement of the rules of the co-operative if the rules so provide.

A fine imposed under subsection (1) must not be more than the maximum fine fixed by the rules of the co-operative.

A fine must not be imposed unless—

notice of intention to impose the fine and the reason for it has been given to the member; and

the member has been given a reasonable opportunity to appear before the board in person (with or without witnesses), or to send to the board a written statement, to show cause why the fine should not be imposed.

The co-operative may set-off the whole or any part of the fine against an amount payable to the member for produce delivered by the member to the co-operative, but no part of the fine is to be set-off against any advance payable to the member from the co-operative under the rules of the co-operative against produce so delivered.