Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 1 : Definitions, Purpose and Application of Act1. Definitions and interpretation |
| (1) | In this Act, unless the context indicates otherwise— |
means the Co-operatives Advisory Council established by section 85 of this Act;
[Definition substituted by section 1(a) of Notice No. 558, GG 36729, dated 5 August 2013]
means the Co-operatives Development Agency established by section 91A;
[Definition inserted by section 1(b) of Notice No. 558, GG 36729, dated 5 August 2013]
means a co-operative that produces, processes or markets agricultural products and supplies agricultural inputs and services to its members;
means a document prepared by the Board containing financial statements, a social report and the management decision report;
means the person contemplated in section 14A;
means the examination of, in accordance with prescribed and applicable auditing standards—
| (a) | financial statements or financial and other information prepared in accordance with suitable criteria; |
| (b) | social reports; and |
| (c) | management decision reports, |
means a report by an auditor examining and evaluating the financial statements, social report and management decision report;
means the Auditing Profession Act, 2005 (Act No. 26 of 2005);
means a registered auditor as contemplated in the Auditing Profession Act;
means the Board of directors set out in section 32;
means the Co-operative Conflict Resolution Commission contemplated in section 91V;
means a set of values and practices which aim to combat poverty, assist the historically disadvantaged and unite communities, by developing individual and collective skills, knowledge and experience and thus empower communities to undertake initiatives to combat social, economic, political or environmental challenges;
means the Companies Act, 2008;
[Definition inserted by section 224(2) (item 1(a) of Schedule 3(B)) of the Companies Act, 2008 (Act No. 71 of 2008), Notice No. 421, GG 32121, dated 9 April 2009]
means a governance document adopted by all members or prospective members of a co-operative, which sets out the objectives, policies and management of that particular co-operative;
[Definition inserted by section 1(h) of Notice No. 558, GG 36729, dated 5 August 2013]
means a co-operative that procures and distributes goods or commodities to its members and non-members and provides services to its members;
means an autonomous association of persons united voluntarily to meet their common economic, social or cultural needs and aspirations through a jointly owned and democratically controlled enterprise organised and operated on co-operative principles;
[Definition substituted by section 1(i) of Notice No. 558, GG 36729, dated 5 August 2013]
means a co-operative that provides funeral benefits, including funeral insurance and other services to its members and their dependants;
means—
| (a) | Voluntary and Open Membership requiring co-operatives to be voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without discrimination on the basis of race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture, language or birth; |
| (b) | Democratic Member Control requiring co-operatives to be democratic organisations controlled by their members through— |
| (i) | members actively participating in setting their policies and making decisions by majority vote; |
| (ii) | men and women serving as elected representatives and being accountable to the members; |
| (iii) | equal voting rights in Category A and B primary cooperatives (one member, one vote); and |
| (iv) | a democratic organisation for voting in Category C primary, secondary and tertiary co-operatives and the national apex co-operative; |
| (c) | Member Economic Participation requiring members to contribute equally in amounts proportionate to their membership shares and democratically control the capital of their co-operative usually by— |
| (i) | retaining part of the capital as common property of the co-operative; |
| (ii) | giving members limited compensation, if any, on capital subscribed as a condition of membership; |
| (iii) | allocating surpluses to the reserves required in terms of section 46 and any additional reserves required by the co-operative’s constitution or considered necessary or desirable by the members; |
| (iv) | benefiting members in proportion to their transactions with the co-operative; and |
| (v) | supporting other activities approved by the members; |
| (d) | Autonomy and Independence requiring co-operatives to be autonomous, self-help organisations controlled by their members and if co-operatives enter into agreements with other organisations, including governments, or raise capital from external sources, they should do so on terms that ensure democratic control by their members and maintain their co-operative autonomy; |
| (e) | Education, Training and Information requiring co-operatives to provide appropriate education and practical training for their members, elected representatives and employees so that they can contribute effectively to the development of their co-operatives and are able to inform the general public, particularly young people and opinion leaders, about the nature and benefits of co-operation; |
| (f) | Co-operation among Co-operatives requiring co-operatives to serve their members as effectively as possible and strengthen the co-operative movement by working together through local, national, regional and international structures where possible; and |
| (g) | Concern for Community requiring co-operatives to work for the sustainable development of their communities through policies approved by their members; |
[Definition substituted by section 1(j) of Notice No. 558, GG 36729, dated 5 August 2013]
means the Department of Trade and Industry;
[Definition deleted by section 224(2) (item 1(b) of Schedule 3(B)) of the Companies Act, 2008 (Act No. 71 of 2008), Notice No. 421, GG 32121, dated 9 April 2009]
[Definition deleted by section 224(2) (item 1(b) of Schedule 3(B)) of the Companies Act, 2008 (Act No. 71 of 2008), Notice No. 421, GG 32121, dated 9 April 2009]
means a co-operative whose main objective is to provide financial services to its members;
[Definition substituted by section 1(k) of Notice No. 558, GG 36729, dated 5 August 2013]
means statements drafted by the Board for a particular financial period and includes—
| (a) | a statement of financial position (balance sheet); |
| (b) | an income statement; |
| (c) | a statement of changes in membership shares; |
| (d) | a statement of cash flows; and |
| (e) | notes, comprising a summary of accounting policies and other explanatory notes; |
[Definition inserted by section 1(l) of Notice No. 558, GG 36729, dated 5 August 2013]
means a meeting of the members of a co-operative, and includes, as the context indicates, an annual general meeting, a special general meeting or a regional general meeting;
means a co-operative which provides housing to its members;
[Definition substituted by section 1(m) of Notice No. 558, GG 36729, dated 5 August 2013]
"independent review"
means an assessment by an independent reviewer of the financial statements and the social and management decision reports so as to determine, through performing a preliminary inquiry using analytical procedures and evaluating the sufficiency and appropriateness of evidence obtained, whether there is reason to believe the financial statements, social reports and management decision reports are not prepared in all material respects in accordance with the applicable reporting framework;
[Definition inserted by section 1(n) of Notice No. 558, GG 36729, dated 5 August 2013]
"independent reviewed report"
means a report by an independent reviewer examining and evaluating the financial statements, social report and management decision report;
[Definition inserted by section 1(n) of Notice No. 558, GG 36729, dated 5 August 2013]
means—
| (a) | a registered auditor, or a member in good standing of a professional body that has been accredited in terms of section 33 of the Auditing Profession Act; or |
| (b) | a person who is qualified to be appointed as an accounting officer of a close corporation in terms of section 60(1), (2) and (4) of the Close Corporations Act, 1984 (Act No. 69 of 1984); |
[Definition inserted by section 1(n) of Notice No. 558, GG 36729, dated 5 August 2013]
"juristic person"
means—
| (a) | a juristic person; and |
| (b) | a trust, irrespective of whether or not it was established within or outside of the Republic; |
[Definition inserted by section 1(n) of Notice No. 558, GG 36729, dated 5 August 2013]
"management decision report"
means an assessment report drafted by the Board that accompanies the financial statements and that assesses the co-operative’s compliance with all legal requirements and the requirements contained in its own constitution;
[Definition inserted by section 1(n) of Notice No. 558, GG 36729, dated 5 August 2013]
means a co-operative that engages in the supply of production inputs to members and markets or processes their products, and also includes an agricultural marketing and supply co-operative;
means a loan made by a member to a co-operative;
means a share issued to a member of a co-operative as a requirement for membership of a co-operative;
means the Minister of Trade and Industry;
"national apex co-operative"
means the national apex co-operative contemplated in section 6(1)(d);
[Definition inserted by section 1(o) of Notice No. 558, GG 36729, dated 5 August 2013]
means the value on the face of the share;
means a resolution passed at a general meeting by the majority of the members present;
means the proportion which the value of the transactions conducted by a member with a co-operative during a specified period bears to the value of the transactions conducted by all members with a co-operative during the same period;
means prescribed by regulation;
means a co-operative whose object is to provide employment or services to its members and to facilitate community development, formed by a minimum of—
| (a) | five natural persons; or |
| (b) | two juristic persons; or |
| (c) | a combination of any five persons, whether natural or juristic; |
[Definition substituted by section 1(p) of Notice No. 558, GG 36729, dated 5 August 2013]
means the Public Finance Management Act, 1999 (Act No. 1 of 1999);
[Definition inserted by section 1(q) of Notice No. 558, GG 36729, dated 5 August 2013]
means the Registrar of Co-operatives;
means a portion of the surplus that is set aside in an indivisible reserve and that is indivisible amongst the members of a co-operative;
[Definition substituted by section 79 of Notice No. 558, GG 36729, dated 5 August 2013]
means a fund established in terms of section 46;
means a co-operative formed by two or more primary co-operatives to provide sectoral services to its members, and may include juristic persons;
means a co-operative that engages in housing, health care, child care, transportation, communication and other services;
includes membership shares and any additional shares that may be issued by a co-operative;
[Definition substituted by section 1(r) of Notice No. 558, GG 36729, dated 5 August 2013]
[Definition inserted by section 1(s) of Notice No. 558, GG 36729, dated 5 August 2013]
means a resolution passed at a general meeting by not less than two thirds of the members present, or such greater majority as may be specified in the constitution of a co-operative;
means a committee contemplated in section 27(3)(b);
[Definition substituted by section 1(t) of Notice No. 558, GG 36729, dated 5 August 2013]
[Definition substituted by section 1(u) of Notice No. 558, GG 36729, dated 5 August 2013];
means a sectoral or multi-sectoral co-operative whose members are secondary co-operatives and whose objectives are to advocate and engage organs of state, the private sector and stakeholders on behalf of its members, in line with its sectoral or geographical mandate;
[Definition substituted by section 1(v) of Notice No. 558, GG 36729, dated 5 August 2013];
includes the Schedules and any regulations made in terms of this Act;
means the Co-operatives Tribunal established by section 91L;
[Definition inserted by section 1(w) of Notice No. 558, GG 36729, dated 5 August 2013]
means the arrangement through which the ownership in property of one person is by virtue of a trust instrument made over or bequeathed—
| (a) | to another person, the trustee, in whole or in part, to be administered or disposed of according to the provisions of the trust instrument for the benefit of the person or class of persons designated in the trust instrument or for the achievement of the object stated in the trust instrument; or |
| (b) | to the beneficiaries designated in the trust instrument, which property is placed under the control of another person, the trustee, to be administered or disposed of according to the provisions of the trust instrument for the benefit of the person or class of persons designated in the trust instrument or for the achievement of the object stated in the trust instrument, |
but does not include the property of another which is to be administered by any person as executor, tutor or curator in terms of the provisions of the Administration of Estates Act 1965 (Act No. 66 of 1965);
[Definition inserted by section 1(w) of Notice No. 558, GG 36729, dated 5 August 2013]
means a primary co-operative in which the members pursue the objective of optimally utilising their labour by building a jointly owned and self-managed enterprise.
[Definition substituted by section 1(x) of Notice No. 558, GG 36729, dated 5 August 2013]
| (2) | This Act must be interpreted to give effect to its purpose and to develop the co-operative principles contemplated in section 3. |