Debentures

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 decided to raise funds by offering debentures, the following steps need to be undertaken.

1. Prepare a Disclosure Statement in accordance with s338 CNL or s252 Co-operatives Act 2009 WA
2. Submit the disclosure statement for approval by the Registrar
3. Prepare administrative systems:
   1. Create a Register of securities – Schedule 2 CNR or Schedule 4 Co-operatives Reg. 2010 WA. A sample register is available at the end of the Capital Builder.
   2. Set up a documentary certification process (paper or electronic) to record the allotment of securities to individuals.
   3. Establish a payment facility for receiving subscriptions for debentures.
4. Once the disclosure statement is approved by the Registrar, the offer can go live.

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