Drafting the disclosure statement
Before you form a distributing Co-operative, a separate, written disclosure statement must be prepared. This document must make sure prospective members have the information they need about the nature and extent of other members’ financial involvement and liability.
The disclosure statement must contain a number of sections, together with any supporting documentation. The key aspects to include are:
- details on the purpose and main activity of the Co-operative
- the estimated costs of formation
- the active membership provisions of the proposed Co-operative
- the rights and liabilities attaching to shares in the proposed Co-operative
- the capital required for the Co-operative at the time of formation
- the projected income and expenditure of the Co-operative for its first year of operation
- information about any contracts required to be entered into by the Co-operative.
A disclosure statement including a supporting report from an expert (such as an accountant or auditor), must also state that the expert has given and has not withdrawn their consent.
This example may help with drafting disclosure statements - Disclosure statement for formation of a distributing co-operative (docx, 32.9 KB).
A completed draft disclosure statement must be submitted to the Registrar at least 28 days before the formation meeting is held. The Registrar may either:
- approve the draft statement as submitted
- approve an amended statement
- refuse to approve the statement.
Approving the rules and disclosure statement
The draft rules and disclosure statement for a distributing Co-operative should be lodged with Consumer, Building and Occupational Services for approval. Complete and submit the Application to approve rules and formation disclosure statement (pdf, 226.4 KB).
After the application has been lodged
The standard processing time is 28 days. If your rules and disclosure statement (if required) is approved without amendment, you will be sent:
- an Application to register a Co-operative (pdf, 252.8 KB) for you to complete
- an approved copy of the rules to present at your formation meeting.