2020 AGM-Active Member Rule Change
Purpose: To pass a Special Resolution to update the ‘Active Member' Rule per the Current Alfalfa House Rules.
EXPLANATION of PROPOSED RULE CHANGES
The MC proposes two special resolutions to amend the Rules of the co-operative.
(a) AMENDING THE ACTIVE MEMBERSHIP RULE
Special Resolution: To amend the co-operative’s rules by adopting the draft Active Membership rule.
The MC is proposing that the Active Membership rule be amended to better reflect the Co-op’s practice since 2017, of charging an Annual Subscription Fee as part of being a member.
If passed, members will need to pay the Annual Subscription Fee (ASF) each calendar year to remain ‘ACTIVE’ members of the co-operative.
The proposed new ACTIVE MEMBERSHIP RULE is:
1.3B Active membership requirements
In order to establish and maintain active membership of the co-operative, a member must:
(a) Pay any annual subscription set out in rule 3.1; and
(b) Make at least one purchase of products or services from the co-operative in a given calendar year.
The new part (a) above is the only change to our current Active Member rule, which has been in force since 2003.
For reference, Rule 3.1 (Feb. 2020) reads:
3.1 ANNUAL SUBSCRIPTIONS
Members must pay an annual subscription of up to $50 plus GST each calendar year or such other amount as determined by the Members’ Council from time to time and announced at the co-operative’s Annual General Meeting.
The annual subscription fee shall be payable in advance within a period determined by the Members’ Council.
The Members’ Council may in its discretion waive all or part of the annual subscription fee and/or extend the payment period for a member or a class of members.
(b) OTHER AMENDMENTS TO THE RULES
Special Resolution: To amend the co-operative’s rules by adopting the grammatical, formatting and phrasing changes contained in the draft Rules.
The MC is also proposing a few changes to the Rules to address grammatical errors, formatting errors, and awkward or ambiguous phrasing.
If passed, these changes will not substantially change the Rules, but will improve clarity for all members and users of the Rules.
The main proposed changes are:
3.1 ANNUAL SUBSCRIPTIONS
Members must pay an annual subscription of up to $50 plus GST each calendar year as determined by the Members’ Council from time to time, and announced at the co-operative’s Annual General Meeting.
[Delete ‘or such other amount’, which made the intention of the rule, to cap subscriptions at $50, ambiguous.]
1.3 Purpose
b) provide information on, and promote the use of:
i) low-cost, ethically-produced and minimally-packaged wholefoods,
[clarify the intention under our Purpose rule to provide minimally-packaged products to members]
5.2.7 Any active member of the co-operative who has a resolution that requires a decision by the members at a general meeting, must serve written notice of it on the co-operative. [insert the word ‘member’]
A fully track changed copy of the Draft Rules including the proposed Active Membership rule and other changes can be viewed here. Current rules can be viewed here.
D. DEPT. of FAIR TRADING (Co-ops Registry) REQUIREMENT
We are also required to provide you with the text of section 156 of the Co-operatives National Law (CNL) as changes to our Active Membership Rule are being proposed.
This pertains to membership cancellation, a process we commence after approximately two years inactivity – the Members’ Council may defer cancellation of a person’s membership for up to one more year in accordance with section CNL 156, below.
CNL 156. Cancellation of membership of inactive member
(1) Subject to sections 159 and 160, the board of a co-operative must declare the membership of a member cancelled if –
(a) the whereabouts of the member are not presently known to the co-operative and have not been known to the co-operative for at least the required period before that time; or
(b) the member is not presently an active member of the co-operative and has not been an active member of the co-operative at any time during the required period immediately before that time.
(2) This section applies to a member only if he or she was a member of the co-operative throughout the required period.
(3) The question of whether a member was an active member at a particular time in the past is to be decided as if the active membership provisions concerned had been in force at that time.
(4) The board’s declaration under this section has the effect of cancelling the membership concerned.
(5) A person may apply for an order under section 162 in relation to the cancellation of the person’s membership under this section.
(6) In this section –
the required period, in relation to a co-operative, means –
(a) 3 years; or
(b) if a shorter period is stated in the rules of the co-operative – that period.