Co-operatives Act 2009

The board of a co‑operative must ensure that the rules of the co‑operative contain active membership provisions in accordance with this Part.

115. Factors and considerations for determining primary activities etc.

The board of a co‑operative must ensure that the relevant factors and considerations are taken into account in deciding —

which of the activities of a co‑operative are its primary activities; and

the way and extent to which a member is required to use or support an activity of, or maintain a relationship or an arrangement with, a co‑operative, for carrying on a primary activity of the co‑operative, in order to establish active membership of the co‑operative.

The relevant factors and considerations are —

the primary activity or, if more than one, the primary activities taken together must form the basic purpose for which the co‑operative exists and a significant contribution to the business of the co‑operative; and

the way and extent of the required utilisation, support, relationship or arrangement should be reasonable when considered in relation to the activities of the co‑operative as a whole; and

any other factors and considerations that are prescribed by the regulations.

The regulations may —

provide for the matters to be taken into account in deciding whether an activity makes a significant contribution to the business of the co‑operative; and

specify minimum percentages of turnover, minimum amounts of income or minimum amounts of business necessary to constitute that significant contribution.

Nothing in this section limits the right of active members other than the board of the co‑operative to propose an active membership resolution.