Co-operatives are democratic organisations, focused on delivering their mission to their members rather than maximising return to investors. Consider a co-op when you have at least five eligible members.
See Also
Co-op Membership - What you get - Co-opWhat Is A Co-op? | Defining Co-Ops, Types And How They WorkIn store services - Co-opWhy Choose Co‑op?A co-operative is a democratic organisation, owned and controlled by its members for a shared benefit. It is a distinct legal entity from its members or officers.
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EQUITY INQUIRIESIn Australia, the types of co-operative are:
- ‘Distributing co-operative’: has shares and can distribute profits to members based on level of use of the co-op’s services, or their shareholding.
- ‘Non-distributing co-operative’: may or may not have shares and cannot distribute profits to members. Profits are re-invested into improved products and services.
Co-operatives based in Tasmania are regulated byConsumer, Building and Occupational Services, which administers theCo-operatives National Law in the state.
Advantages of a co-operative include that:
- there are equal voting rights for members
- this structure encourages member contribution and shared responsibility
- liability for members is limited
- there is no limit on the number of members
Disadvantages of a co-operative include that:
- members have equal voting rights regardless of investment - which may not suit an investor-driven business
- legal limits on payments of dividends on shares may not suit an investor-driven business
Find out more about co-operatives atgetmutual.coop
