The Chief Directorate: Cooperatives Development Unit (CDU) in the South African Department of Trade and Industry has commissioned Southern African IDEAS to prepare regulations for the Cooperatives Amendment Bill (Amendments to Act No. 14 of 2005).

The South African Co-operatives Act No 14 of 2005 was promulgated in August 2005. The Act sought to encompass all forms of cooperatives, including those that had been ignored under the old Co-operatives Act. The accompanying regulations were drafted during 2006.

Certain gaps and areas in the Co-operatives Act have been identified and for this reason the Department of Trade and Industry (the dti), in consultation with the cooperative movement and other cooperative development partners drafted amendments to the act. A draft amendment document was prepared, which was presented to the minister. In November 2008, the minister granted permission for the amendment of the Cooperatives Act, No.14 of 2005.

Some of the areas that have been included in the Cooperative Amendment Bill are:

• Categories of cooperatives
• Auditing of cooperatives
• Use of reserve funds of cooperatives
• Thresholds of cooperatives

In order to ensure the practical implementation of the new provisions as outlined in the Co-operatives Amendment Bill (2010), additional regulations need to be prepared to accompany the new provisions in the Draft Cooperatives Bill (2010).

Resources:

A Co-operative Development Policy for South Africa

Base-line study of co-operatives in South Africa

Building their business, brick-by-brick - Co-operative Incentive Scheme lays the foundation for SMME growth

South African co-operative user guides

Resilience of the Cooperative Business Model in Times of Crisis (ILO 2009)

International Co-operative Alliance

International Labour Organization: Co-operative Development

July 2010

Southern African IDEAS