New laws to cut red tape around co-ops

NEW LAWS to cut the red tape on setting up and running co-operatives are to be introduced by Minister for Jobs and Enterprise Richard Bruton.

The new rules will ease financial reporting restrictions by extending the period allowed to prepare and submit annual returns and accounts.

The statutory limit on individual shareholdings in co-operative societies is to be abolished, along with the existing three-yearly requirement for shareholders to make returns.

Co-operatives will be able to avail of the examinership process, similar to limited companies, and new rules will make it easier for cancelled societies to be restored to the register.

Other measures include an easing of fundraising restrictions for non-agricultural societies and provisions for the cessation of registration of any society.

Mr Bruton said his aim was to ease the regulatory burden on co-ops and to make it easier to start up and run them as an alternative form of enterprise.

The Cabinet recently approved his proposals, which are in line with similar measures to reduce red tape on companies.

The Minister said it was important to recognise there were alternatives to the limited company.

“Other forms of enterprise organisation can play a role in meeting needs in different sectors, and I am determined to ensure the legislation governing these models is up to date and that the burden of red tape is kept to a minimum.”

He said the legislation addressed particular problems identified in the co-operative sector, and would help ensure that this model thrived.

The changes will take the form of amendments to the Industrial and Provident Societies Acts 1893 to 1978, which is the legislation applying to most co-operatives in Ireland.