Queensland parliament passed the Co-operatives National Law (CNL) Bill 2020 in June 2020, confirming the states acceptance and joining of the national CNL scheme for the operation of cooperatives. Queensland was the last state to adopt the legislation.
This adoption of the CNL in Queensland means that the state rules will be consistent with all others on a national level, providing a nationally harmonised scheme of legislation regulating co-operatives across Australia.
We understand that the law has not yet commenced and is expected to take effect 2021.
The main changes for Queensland Co-operatives are:
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Reduce financial reporting requirements for small cooperatives. A cooperative is defined as small if it meets two of the following three criteria in one year:
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Modernise directors’ and officers’ duties and responsibilities to a standard of corporate governance that is consistent with modern requirements under the Corporations Act 2001
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Allow cooperatives to raise funds by issuing cooperative capital units to members or non-members.