Introduction: Industrial and Provident Societies

The International Co-operative Alliance (ICA) Statement on the Co-operative Identity describes a co-operative as ‘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’. All co-operative organisations operate under the ICA  co-operative values and principles. While the co-operative organisation are usually first thought of as aIndustrial and provident society (IPS) Co-operative, there are many different legal forms that can be used to create an organisation which falls within this definition. For example a company limited by guarantee could be used.  One of the key features is usually 'one member one vote'.

Industrial and provident society (IPS) community benefit society (also known as ‘society for the benefit of the community’ or ‘bencom’), Industrial and provident society (IPS) co-operative (also known as ‘bona fide co-operative’) are the two main co-operative legal structures.  The difference between the two is in the stakeholder groups that the society is set up to benefit. An IPS co-operative is set up to benefit its members, whereas a IPS community benefit society is set up to benefit the community more widely, whether people are members or not.

The Co-operative and Community Benefit Societies and Credit Unions Act 2010 was passed in march.  This will lead to changes to this area and we will update the information as soon as this becomes available. Co-ops UK also provide information in this area.