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Co-operatives Act, 2005 (Act No. 14 of 2005)

Schedules

Schedule 1 : Special Provisions Relating to Certain Kinds of Co-operatives

Part 2 : Worker Co-operatives

3. Requirements of constitution

 

(1) In addition to the other requirements of this Act, the constitution of a worker co-operative must provide—
(a) whether membership is restricted to natural persons who work for the co-operative;
(b) whether the maximum amount a member is required to contribute during the first year of membership, whether by way of entrance fees, payments in respect of shares or in respect of a member loan, may not exceed half the person’s expected annual remuneration;
(c) whether the co-operative is entitled to provide employment to persons who are not members and, if so, a limitation on the number of persons that are non-members that may be employed, expressed as a percentage of the number of members, which percentage should not exceed twenty five per cent;
(d) whether the period of probation to an application for membership, which may not exceed a period of two years is applicable;
(e) for the procedure for allocating, crediting or distributing any surplus earned, including a provision that not less than fifty per cent of such surplus must be paid on the basis of the remuneration earned by the members from the co-operative or the labour contributed by the members to the co-operative; and
(f) whether the manner in which the membership of a member may be terminated is in accordance with item 4 of this Part.

 

(2) The constitution of a worker co-operative may provide—
(a) how work is to be allocated between members;
(b) for laying off or suspending of members when there is a lack of work, and for the recall to work of members who have been laid off; and
(c) for a procedure for disciplining members.