Financial accounts for cooperatives
When you maintain accounts for your cooperative, you must:
- keep financial records
- prepare financial reports
- appoint someone to audit these reports.
You must set out the last day of your financial year in your rules.
Registers are a helpful way to record information on a range of subjects. In most cases, you will use them to record your financial transactions. You must keep certain information on a register.
All registers must be kept in Queensland at either:
- your registered office
- your principal place of business
- another office where you keep and work with the register
- another office approved by us.
You must keep and make available to members your registers that relate to:
- your directors
- members and shares
- cancelled memberships (showing their last activity date)
- notifiable interests
- any loans you’ve made or been guarantor for
- any securities you’ve taken out
- the names of people who
- provided loans or credit as subordinated debt
- provided other types of loan or deposit
- hold any securities or debentures that you’ve issued.
Members must be able to inspect the registers for free. You may charge a fee if they wish to take a copy.
You will also need to keep a register of:
- loans, securities, debentures and deposits that the cooperative has issued or received
- fixed assets
- subordinated debt.
Do not make these registers available to your members.
The law places a limit on the value of an individual’s shares. The shares must not be worth more than 20% of the total nominal value of your share capital.
Work out the total nominal value by:
- setting out the nominal value of each share in your rules
- multiply this value by the total number of shares you issue.
You can increase the 20% limit on shares by either:
- holding a special resolution
- applying to us.
We must approve the special resolution, and may impose certain conditions.
A person must give you notice if they have a:
- relevant interest in the right to vote of a member
- substantial share interest.
This is known as a ‘notifiable interest’. You must keep a register of these interests.
You might need to raise money if you need to:
- fund certain activities
- buy new equipment or other items.
We regulate the ways that you can fundraise. You can raise money by releasing:
- additional funds.
Contact us for more information.
If you need to borrow funds, your lender can register a ‘charge’ against your property. This becomes the security for the debt.
They can register their charge with the Personal Property Securities Register (PPSR).
A charge has priority over other forms of unsecured debts. If your cooperative goes out of business, your debts will be paid in priority order. If you cannot pay the lender:
- your charged property is sold
- the lender is paid their money from the sale
- other creditors must wait until the lender has all the money you owed them.
You may also need to seek legal advice.