IPS Co-operative societies
| Who controls it? | Management committee |
| What is the governing document? | Rules |
| Who is the regulator? | FSA |
| Does it have limited liability? | Yes |
| What sources of finance are available? | Loans, Equity Finance, rarely grants |
| Is charitable status available? | Very rarely |
Industrial and Provident Society (IPS) Co-operative society (bonafide co-operative) are a type of society with a co-operative structure that are established for member benefit rather than public benefit. The International Co-operative Alliance 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-operatives operate under the the International Co-opertive Alliance co-operative values and Principles.
One of their key features is usually summarised as 'one member, one vote'. There are several different types of co-operatives (e.g. worker, consumer, community, agricultural). Further information can be found at Co-operatives UK.
They cannot be charitable, except possibly in a case where a necessary condition of membership is to be within a class of charitable beneficiaries (for example, being a resident in financial need in an area of deprivation).
They can raise equity finance up to a maximum of £20,000. [This restriction does not apply to members who are themselves Co-operative Societies or local authorities who have acquired a holding under the Housing Associations Act 1985.]
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