The Cooperatives and Community Benefit Societies Act 2014
The Cooperatives and Community Benefit Societies Act 2014 is a comprehensive piece of legislation that aims to support the development of cooperatives and community benefit societies by modernizing and simplifying the legal framework under which they operate. The Act is relevant to a wide range of organizations, including agricultural co-operatives, community-owned businesses, housing associations, and credit unions.
One of the key features of the Act is the simplification of the registration process for new cooperatives and community benefit societies. The Act introduces a new online registration system, making it quicker and easier for organizations to set up and register. The process has been streamlined, and unnecessary bureaucratic hurdles have been removed.
The Act also introduces new rules to ensure that cooperatives and community benefit societies are democratically controlled by their members. This includes requirements for transparent decision-making processes, a one-member-one-vote system, and the ability for members to hold directors accountable for their decisions.
The Act provides greater flexibility for societies to raise capital and pay dividends to their members. Societies can now issue transferable shares, allowing them to raise equity capital more easily, and they can also pay dividends to their members based on the amount of business they do with the society.
The Act also creates a new statutory framework for the conversion of companies to cooperatives or community benefit societies. This provides a simple and efficient mechanism for companies to convert to a cooperative or community benefit society structure, enabling them to benefit from the legal and financial advantages of this type of organization.
Finally, the Act improves the governance of cooperatives and community benefit societies through new requirements for reporting and disclosure. This includes requirements for the publication of annual accounts and reports, and for societies to make certain information publicly available.
Overall, the Cooperatives and Community Benefit Societies Act 2014 is an important piece of legislation that aims to support the growth and development of cooperatives and community benefit societies in the UK. By simplifying the legal framework and improving the governance of these organizations, the Act is helping to promote a more sustainable and inclusive economy.
The UK Co-operative Community Benefit Society (CBS)
The UK Co-operative Community Benefit Society (CBS) rules govern the formation and operation of co-operative societies. These societies are community-focused enterprises that are owned and controlled by their members, who share in the benefits and profits.
The CBS rules specify that the society must have at least three members, who must be over the age of 16 and share a common interest or purpose. The society must also have a set of governing documents, including a constitution, rules, and a registered office.
The rules also require the society to have a board of directors, elected by the members, who are responsible for managing the society’s affairs. The board must also ensure that the society operates for the benefit of its members and the wider community.
The CBS rules specify that the society must use any profits or surpluses for the benefit of its members or the wider community. This can be done by reinvesting profits back into the business, distributing profits to members, or by supporting community initiatives.
Finally, the rules require the society to undergo regular audits and to file annual returns with the appropriate regulatory body, such as the Financial Conduct Authority or the Registrar of Friendly Societies.