On Jul. 22, AUT GVT published cooperative law amendment act 2024.
AUT GVT Federal Act amending Cooperatives Act, the Associations Act, the Companies Register Act, the Cooperatives Audit Act 1997, the Cooperatives Insolvency Act, the Cooperatives Mergers Act, the Cooperatives Demergers Act and the Companies Code.
The new legislation is the Cooperatives Law Amendment Act 2024 (GenRAG 2024).
Law Overview
The first change affects Section 2, and part of the wording of this has been amended.
Changes relate to commercial and economic cooperatives are established with limited liability of members, and confirms cooperative members are not liable to creditors.
The first change affects Section 76, where part of the wording has now been amended
In event of bankruptcy or liquidation of cooperative, they must pay remaining deposits and make additional contributions under Section 76, if necessary to satisfy creditors.
In the event of bankruptcy or liquidation, every member of a cooperative is obliged to pay any outstanding deposits to the extent that this is necessary to satisfy creditors.
Next change relates to Section 91a, and part of wording of this has been amended.
A prerequisite for a conversion to a cooperative is by resolution at general meeting.
The conversion resolution requires the majority required for a voluntary dissolution of the previous association, unless the specific statutes stipulate higher requirements.
Remainder of legislation makes required changes to Associations Act, the Companies Register Act, the Cooperatives Audit Act 1997, and the Cooperatives Insolvency Act, the Cooperatives Mergers Act, the Cooperatives Demergers Act, and Companies Code.
Effectiveness
The various legislative changes shall all enter into force on Jan. 1, 2025, and relevant current sections of the legislation to be replaced, will all expire as at Dec. 31, 2024.
