Keeping registers for co-operatives
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 (the Office of Fair Trading).
You must keep registers of:
- your directors
- your members and any shares
- cancelled memberships showing their last activity date
- co-operatives legislation
- your rules
- your last annual report
- minutes of each general meetings
- notifiable interests
- any loans you’ve made or been guarantor for
- any securities you’ve taken out
- co-operative capital units
- the names of people who
- provided loans or deposits
- hold any securities or debentures that you’ve issued.
Members are entitled to inspect these registers for free during reasonable hours. You may charge a fee if they wish to take a copy—if your rules allow for such a fee.
You must also keep a register of loans, securities, debentures and deposits the co-operative has issued or received. Members are not entitled to inspect this register.
Notifiable interests register
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 and members are entitled to inspect this register for free during reasonable hours.
Shares in distributing co-operatives
The law limits the value of an individual’s shares. Their 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
- multiplying 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.
You might need to raise money to:
- fund certain activities
- buy new equipment or other items.
We regulate the ways that you can fundraise. You can raise money by releasing:
- co-operative capital units
- 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 co-operative 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.
Contact the PPSR to find out more.
You may also need to seek legal advice.