|
Co-Operative registration
As the name suggests, a 'co-operative'
is all about working together toward a common goal. This goal could
be anything from saving money, building houses, or starting a
business.
A
co-operative
business is based on democracy - every member in the
co-operative participates in making decisions that control the
business. To become members, people buy a share or pay an Entrance
fee of the co-operative, and get one vote each. Even if a company
buys many shares or pays an entrance fee in a
co-operative, it
still only has one vote, like everyone else.
Members then elect at least three
directors, who manage and control the daily running of the
co-operative and who are answerable to the members.
There are some important
differences between a small enterprise that is run as a co-operative
and one that is run as a close corporation or a limited company. The
main ones are that:
- A co-operative is
controlled by everyone who works in it (most co-operatives
have a strict "one member, one vote" system;
- A co-operative is
generally not run for a profit, although it must be
financially viable; All members of a co-operative
benefit from any surplus money that it makes.
-
There is a 'moral incentive' for being in the
co-operative - a desire to be part of a democratic
business that benefits a whole community.
-
Members provide products and/or services to the
co-operative, or tye co-operative provides products
and/or services to the members.
Worldwide, some 800 million people are members of co-operatives,
and it is estimated that cooperatives employ about 100 million
people.
The first co-operatives were groups of consumers who got together
to start their own store, so that they could buy their goods more
cheaply - and they used any surplus to improve their communities.
The idea soon became applied in other ways, with people running
businesses together to provide employment and strengthen the
community.
The official definition of a co-operative - as recognised around
the world - is as follows: "An autonomous association of persons
united voluntarily to meet their common economic, social and
cultural needs and aspirations through a jointly owned and
democratically controlled enterprise".
Click
HERE
to register your
CC (Close Corporation) |
