Co-operatives Act, 2005 (Act No. 14 of 2005)RegulationsPrinciples of Good Governance for Co-operatives8. Constitution of a co-operative |
The constitution is a governance document adopted by the members or all prospective members of the co-operative, which sets out the objectives, policies and management of the particular co-operative. It sets out the rights and responsibilities of the members of the co–operative as well as that of the board of directors of the co-operative.
The submission of a constitution is one of the requirements for the registration of a co-operative. At the founding meeting of a co-operative, a constitution must be read and agreed to and signed by all founding members. This constitution must be filed with Companies and Intellectual Property Commission (CIPC).
A co-operative may amendment its constitution if a proposed amendment to the constitution is approved by the annual general meeting or by special resolution at a general meeting.
A co-operative registered in South Africa must comply with the following minimum legislative requirements:
| (a) | A co-operative registered in South Africa must adopt a constitution that complies with the following requirements as stipulated in section 14 of Co-operatives Act 14 of 2005 as amended through Co-operatives Amendment Act No 6 of 2013; |
| (b) | Co-operatives that provides for associate members should comply with the provisions for associate members provided for under section 14 of Co-operatives Amendment Act 6 of 2013; |
| (c) | A co-operative where members are required to hold shares must adopt a constitution that complies with sections 14 and 15 of Co-operatives Act 14 of 2005 as amended through Cooperatives Amendment Act No 6 of 2013; |
| (d) | A co-operative may, in addition to the matters listed under section 14(2), adopt any other provision that is not inconsistent with the Act; |
| (e) | If the name of a co-operative indicates a restriction on the business that may be carried out by that co-operative, the constitution of that co-operative may not be amended to remove such as restriction unless the name of the co-operative is also amended accordingly; |
| (f) | A co-operative may use a trademark name registered to it by the registrar followed by the abbreviations "co-op" and "Ltd" if the constitution of the co-operative authorises the use of such trademark. |
The self-assessment questions under section 11 of this document will assist and guide cooperative to ensure compliance to all legislative requirements with regard to the constitution of a co-operative.