Worker co-operatives

Type: Employee-owned co-operative that intends to meet the board composition requirements exemption for co-operatives under aged care regulations (see page 28 in The Care Co-op Toolkit for more information on the exemption).

Primary Activity

The primary activities of the co-operative are:

1. to deliver best practice/high quality funded Care Services in accordance with the Aged Care Quality Standards and/or NDIS Practice Standards (as applicable); and
2. to provide a secure and supportive workplace, improved training opportunities and skills development for workers engaged in the delivery of the Co-operative’s services.

Active membership

1. In order to maintain active membership, each member must:
   1. work for the Co-operative for a minimum of [xx] hours each financial year;
   2. pay the regular subscription fee in accordance with rule xx (which money will be used towards the primary activities of the Co-operative); and
   3. attend at least two (2) meetings of the Co-operative per financial year (whether it be a general meeting, special general meeting, or informal event).
2. All members of the Co-operative must be active members.
3. Subject to sections [123 and 124 of the Co-operatives Act / 159 and 160 of the Co-operatives National Law], a member who fails to be or stops being an active member must, under the Law, have their membership cancelled.

Qualifications for membership

A person qualifies to be admitted to membership if they are:

1. a natural person; and
2. have satisfactorily completed their probational period of employment with the Co-operative of up to three (3) months as may be specified in their respective employment contracts; and
3. remain employed by the Co-operative.

The following word has a special meaning for the purposes of the primary activities and active membership requirements:

“Care Services means aged care, disability care and/or health services”.

6.10 Winding up

1. The winding up of the co-operative must be in accordance with the Law.
2. If, on the winding up or dissolution after the satisfaction of all the co-operative’s debts and liabilities there remains any surplus property this must be distributed,
   1. first, by repayment of the nominal value of shares to members, and then,
   2. to one or more organisations which:
      1. prohibit the distribution of any surplus assets to its members to at least the same extent as the co-operative; and
      2. with similar purposes to, or inclusive of, the co-operative’s purposes set out in rule 1.3.
3. The decision as to which the organisations are to be given any surplus assets, must be made by a special resolution of members at or before the time of winding up. If the members do not make this decision, the co-operative may apply to the Supreme Court to make this decision.
4. If on the winding up or dissolution there is a deficiency, members are liable to contribute towards the deficiency to the extent of any amount unpaid on the shares held by the member and any charges payable by the member to the co-operative as required by these rules.

Please select “123 and 124 of the Co-operatives Act for all States and Territories”, excluding WA.

Please select “159 and 160 of the Co-operatives National Law” for WA.