All corporations must have a constitution. This is a set of rules and processes for the internal running of the corporation. Legislation for co-operatives refers to the constitution as the “Rules”.
The rules for each co-operative must describe the main activities that the co-operative will undertake, and how each member commits to support the co-operative’s activities. The rules also provide processes for voting, meetings, electing the directors and reporting to members.
The rules and any disclosure statement must be approved by the registrar of co-operatives in the state or territory that you plan to have your main office or place of business.
The Co-op Builder is a FREE step-by-step tool to help groups prepare the rules and disclosure statement for any type of co-operative in any industry. It provides plain English information about how the rules work and how to draft components of your disclosure statement.
One of the first steps is to know who the members of your co-op are, which is part of business planning.
Need to raise finance to start your co-operative? Head over to Run a Co-op and read our Raise Finance section for new and existing co-operatives.