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Handling disputes in a co-operative

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A dispute can arise between:

  • a member and another member
  • a member and the co-operative.

Grievance procedure

A grievance procedure for resolving disputes must be included in the co-operative rules. The procedure must allow for natural justice to be applied.

A member may appoint any person to act on their behalf during the grievance procedure.

The Board is responsible for the conduct of employees of the co-operative. If a member has a complaint against an employee, the member must raise the issue with the Board.

Mediation

Co-operatives can also try resolving disputes by involving a third party, such as the , or by seeking legal advice. To find an appropriate solicitor, contact the .

Application to the Magistrates' Court

A member or the co-operative can make an application to the Magistrates' Court for an order that declares or enforces:

  • the rights or obligations of members of the co-operatives between themselves
  • the rights or obligations of the co-operative and any member between themselves.

Oppressive conduct

The Registrar or a member of the co-operative can make an application to the Supreme Court if they believe the co-operative is conducting business in a way that is:

  • oppressive or unfairly prejudicial or discriminatory against a member
  • contrary to the interests of all the members.

The Supreme Court may make a range of orders, including:

  • making amendments to a co-operative's rules
  • requiring the co-operative or a person to do a specified thing
  • appointing an administrator for a co-operative
  • winding up a co-operative.

The Registrar

The Registrar can take action on any breaches of the Co-operatives National Law; however, the Registrar does not conciliate disputes between members, or between members and a co-operative under its rules.