The Co-operatives National Law Act 2020 has been passed by the Queensland Parliament and given Royal Assent.
The objective of the Act is to modernise and improve the regulatory framework for the formation, registration, and management of co-operatives in Queensland, principally through nationally-harmonised co-operatives legislation. Background.
The Act repeals the Queensland Cooperatives Act 1997, and in its place, applies the Co-operatives National Law (CNL) as a law of Queensland. The CNL is template legislation, contained in the appendix to the Co-operatives (Adoption of National Law) Act 2012 (NSW).
Key reforms of the CNL include:
(a) updating of provisions to ensure consistency of laws across all jurisdictions;
(b) automatic mutual recognition of co-operatives by other states and territories resulting in lower costs and paperwork for co-operatives trading interstate;
(c) simplification of financial reporting and auditing requirements for small co-operatives;
(d) updating of directors’ and officers’ duties to modern standards of corporate governance, integrated with co-operative principles; and
(e) new fundraising provisions for co-operative capital units.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.