Factors and considerations for deciding primary activities and other matters (section 149)
2.5 Factors and considerations for deciding primary activities and other matters (section 149)
For the purposes of section 149 (2)
of the Law, a relevant factor and consideration is that the co-operative actually carries on its primary activities or is likely to do so within 2 years of its formation.
For the purposes of section 149
of the Law, an activity makes a significant contribution to the business of a co-operative:
if, in the course of a financial year, it contributes at least:
10% of the co-operative’s turnover; or
10% of the co-operative’s income; or
10% of the co-operative’s expenses; or
10% of the co-operative’s surplus; or
if, in the Registrar’s opinion, failure by the co-operative to conduct the activity would reduce the business conducted by the co-operative by more than 10%.
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