The general scheme of the Co-operative Societies Bill 2022 introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. This will encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders and help to encourage investment in co-operatives.
It should be noted that the co-operative model is one of a number of corporate options available to those considering establishing themselves in business. The forthcoming legislation will complement the already modernised and consolidated regime applying to companies. However, the choice of corporate model is a matter for the founders of any business and my Department does not promote any corporate structure over any other.
The general scheme has been informed by extensive consultation and engagement with key stakeholders. My Department will continue to engage widely with the co-operative sector and their representative bodies, professional advisers, enterprise development agencies, relevant Government Departments etc to raise awareness of the forthcoming legislation and the potential for those who wish to follow the co-operative ethos to grow and prosper under the modernised co-operative regime.
It is considered that the most appropriate way to raise awareness of the potential benefits of the co-operative model is through existing channels and structures. However, my Department will keep matters under review in the context of preparations for the forthcoming legislation. In any event, it should be noted that any additional supports that might be required within the remit of my Department would not need to be legislated for in the context of the co-operative societies legislation.
In developing the general scheme, my Department reviewed the co-operative arrangements across a range of other jurisdictions, both within the EU and elsewhere. This included the situation in Scotland and more widely in the UK. This work informed the development of the general scheme, which is intended to facilitate the wide diversity of entities who wish to operate under the co-operative ethos.
