Government plans new law on co-operative societies

The Government has approved the drafting of a Bill to update legislation applying to co-operatives.

The new legislation will facilitate the reduction of the voting majority required to permit the amalgamation of co-operatives.

The Minister of State for Science, Technology and Commerce, Mr Noel Treacy, said the proposed Bill would ensure that co-operative societies continue "as a relevant form of corporate entity".

The amendments to the Industrial and Provident Societies Act, which fulfil a Partnership 2000 commitment to facilitate structural change in the food industry, will also modernise other aspects of the legislation, which covers the co-operatives. For the first time co-operative principles will be included in the legislation.

Financial limits on the value of shares that a member may have in a co-operative will be increased to £50,000 or 1 per cent of the total assets of the society, whichever is the larger. For agricultural and fishing co-operatives, the cash limit will be raised to £100,000.

The minimum number of members required to register a society will be reduced from seven to five, a move that is expected to have a positive impact on start-up worker co-operatives.

Examinership provisions, similar to those which apply to private companies, will be extended to co-operatives, while smaller societies will be exempt from statutory audit requirements.

The powers of the Registrar of Friendly Societies, the supervisory authority for co-operatives, will be strengthened.