121   Factors and considerations for determining primary activities etc

(cf Vic Act s 124)

(1)  The board of a co-operative must ensure that the relevant factors and considerations are taken into account in determining the following:

(a)  which of the activities of a co-operative are its primary activities,

(b)  the manner and extent to which a member is required to utilise or support an activity of, or maintain a relationship with, a co-operative, in connection with the carrying on of a primary activity of the co-operative, to establish active membership of the co-operative.

(2)  The relevant factors and considerations are as follows:

(a)  the primary activity or (if more than one) the primary activities taken together should constitute the basic purpose for which the co-operative exists and a significant contribution to the business of the co-operative,

(b)  the manner and extent of required utilisation, support or relationship should be reasonable when considered in relation to the activities of the co-operative as a whole,

(c)  such other factors and considerations as may be prescribed.

(3)  The regulations may provide for the matters to be taken into account in determining whether an activity or activities makes or make a significant contribution to the business of the co-operative and for that purpose may specify minimum percentages of turnover, minimum amounts of income or minimum amounts of business necessary to constitute “significant contribution”.

(4)  Factors and considerations may be prescribed so as to apply to co-operatives generally, to a specified class of co-operatives or to a specified individual co-operative.

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