CCUs

An offer of CCUs requires approval of the Terms of Issue by both the Registrar and the members and an approved disclosure statement.

The preparation of a disclosure statement for co-operatives registered in all States and Territories, other than Western Australia, is governed by the Co-operatives National Law (CNL) and the Co-operatives National Regulations (CNR). For co-operatives registered in Western Australia, the relevant legislation is the Co-operatives Act 2009 and the Co-operatives Regulation 2010.

Once the board has made a decision to raise funds by offering CCUs the following steps need to be undertaken.

1. Check Terms of Issue are drafted in accordance with s350 CNL or s262 of Co-operatives Act 2009 WA
2. Obtain approval of Terms of Issue from Registrar and members,Note: Regulation does not specify whether approval should be sought first from the Registrar or from members. There may be a benefit in seeking Registrar approval first, to avoid the possibility of having to repeat the special resolution process should the Registrar require any changes to the Terms of Issue. The Capital Builder is drafted so that these approvals are obtained before you start drafting the disclosure statement.
3. Prepare Disclosure Statement in accordance with s338 CNL or s252 Co-operatives Act 2009 WA,
4. Submit the disclosure statement for approval by the Registrar.
5. Prepare administrative systems:
   1. Create Register of securities – Schedule 2 CNR or Schedule 4A Co-operatives Reg 2009 WA
   2. Set up a documentary certification (paper or electronic) to record allotment of securities to individuals
   3. Establish a payment facility for subscriptions for CCUs is created
6. Once the disclosure statement is approved by the Registrar, the offer can go live.

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