A co-operative or a member is not allowed to do what is not stipulated in the constitution or allowed in terms of co-operative legislation. Failure to comply with the provisions of the constitution of the co-operative is an offence and is prosecutable by law.

A co-operative may execute all actions or functions necessary to carry out its objectives to obtain its mission and vision provided that such actions and functions comply with the limitations imposed on it by its constitution, the co-operative legislation and any other law. If a co-operative performs any action or function not authorized by its constitution or that contravenes a requirement stipulated by co-operative legislation, the co-operative and director of the co-operative who authorised the action or function performed knowing that the cooperative was not empowered to perform that action or function will be guilty of an offence.