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FACT SHEET
Co-operatives National Law (Tasmania) Bill 2013
The objective of the Co-operatives National Law (CNL) is to
provide a modern regulatory system for co-operatives, which
reduces red tape, creates a uniform national regulatory
framework and provides an even playing field with other
businesses.
The Bill seeks to deliver this by
providing freedom to operate on a national basis;
better access to external capital funding;
simplified reporting for smaller co-operatives; and
an accessible modern legislative framework.
Co-operatives are businesses owned and run for the benefit of
their members. Co-operatives are an important part of a
vibrant and healthy economy and provide crucial services to
not only their members but also the community across a range
of areas including health and medical care, agriculture, retail and
housing services.
The co-operative model is very flexible and can be either for
profit or not-for-profit (referred to in the new legislation as
"distributing" co-ops or "non-distributing" co-ops), depending
on the needs and wishes of members. Co-operatives can be a
source of employment or housing, and can provide vital
infrastructure or other shared resource for members.
The CNL contains provisions for the formation, powers and
constitution, and the management and operation of co-
operatives. It also addresses structural events including merger
and external administration, cross-border trade, mutual
recognition, legal proceedings and other miscellaneous matters.
The new CNL will not make any conceptual changes to the
nature of a co-operative. In fact, section 10 of the CNL
specifically states that the CNL should be interpreted so as to
be consistent with the co-operative principles of the
International Co-operative Alliance. The new regime will,
however, ensure co-operatives are treated comparatively to
other forms of incorporated entity such as companies or
incorporated associations.
Existing co-operatives will be automatically registered under
the new legislation. These co-operatives may, however, need to
consider whether they need to make any minor amendments
to their rules or processes to comply with the new regime.
The legislation is in the form of template legislation, with New
South Wales passing the original legislation. All amendments to
the Co-operatives National Law will be tabled in both Houses
of the Tasmanian Parliament within ten sitting days of their
commencement.
The Co-operatives National Law will be supported by national
regulations and model rules.