Co-operatives Act, 2005 (Act No. 14 of 2005)SchedulesSchedule 1 : Special Provisions Relating to Certain Kinds of Co-operativesPart 1 : Housing Co-operatives3. Constitution of housing co-operative |
| (1) | In addition to the other requirements of this Act, the constitution of a housing co-operative must include the following provisions: |
| (a) | In respect of a primary housing co-operative— |
| (i) | that its main objective is to provide housing for its members; |
| (ii) | that, in accordance with a use agreement and subject to the provisions of its constitution, its members have the right to occupy housing units allocated to them by the co-operative for as long as they remain members of the co-operative; |
| (iii) | that the right of a member to occupy a housing unit owned by the co-operative terminates once membership is terminated, in accordance with its constitution and this Part; |
| (b) | in respect of a secondary housing co-operative, that its main objective is to provide services to primary housing co-operatives and to undertake housing developments on behalf of existing or proposed housing co-operatives; |
| (c) | in respect of all housing co-operatives, that provision must be made for the establishment of adequate reserves and the maintenance of adequate insurance to protect the co-operative from loss. |