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Co-Ops 101

Co-operatives are member-owned businesses that are controlled democratically on a one-member, one-vote basis. Unlike private businesses, co-ops exist to meet member needs rather than maximize profits. Surpluses are distributed to members rather than shareholders. Co-ops are similar to not-for-profits in being member-controlled but differ in their mandate to serve members primarily. Key factors for co-op success include engaged members involved in governance, an effective board knowledgeable about co-op governance and business, and motivated staff who are innovative, flexible and responsive.

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43 views

Co-Ops 101

Co-operatives are member-owned businesses that are controlled democratically on a one-member, one-vote basis. Unlike private businesses, co-ops exist to meet member needs rather than maximize profits. Surpluses are distributed to members rather than shareholders. Co-ops are similar to not-for-profits in being member-controlled but differ in their mandate to serve members primarily. Key factors for co-op success include engaged members involved in governance, an effective board knowledgeable about co-op governance and business, and motivated staff who are innovative, flexible and responsive.

Uploaded by

hustlehard
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Co-o ps 101

Co-operative Internship Experience Program


Wednesday, May 28th, 2008

Ontario Co-operative Association


What is a co-op?
 One of three forms of general business
models
 Similarities to both not-for-profit organizations
and private businesses
 Co-ops are member owned businesses
 Primary purpose is to meet the needs of
members
 Democratically controlled on the one-
member, one-vote principle
 Incorporated under the Ontario Co-
operative Corporations Act
Co-ops vs. Business Corporations
CO-OPERATIVES BUSINESS
 Exist to meet needs of CORPORATIONS
members  Exist to maximize ROI
 Accountable to members  Accountable to
 Surplus distributed to shareholders
members  Unlimited return on
shareholders’ capital
 One member one vote  Vote based on number of
shares held
 Board represents  Board represents
members; directors must shareholders; director may
be members not be shareholder
 Shares generally not  Shares may be traded
traded
Co-ops vs. Not-for-Profits
CO-OPERATIVES NOT-FOR-PROFITS
 Always member controlled  Usually member controlled
 One member one vote  Membership voting classes
 Mandated to meet the  Broader mandate to the
needs of members community
 Board of Directors elected  Board of Directors elected
from membership from membership
 Surplus & patronage may  Surplus kept to further
be distributed to members goals and objectives of
 Can operate as a NFP and organization
be exempt from paying  Exempt from paying
income tax income tax
The 7 International Principles
of Co-operation
 Voluntary and Open Membership
 Democratic Member Control
 Member Economic Participation
 Autonomy and Independence
 Education, Training and Information
 Co-operation Among Co-operatives
 Concern for Community
Key Co-op Success Factors
Engaged Effective Motivated
Members Board Staff
• Clear about • Strategic • Self-directed
needs thinking but responsive
• Involved in • Understand • Innovative and
governance governance and flexible
business

All have understanding of roles and responsibilities


•Communications, governance, business, decision making

Through orientation, education and training


Questions?
Jennifer Heneberry
Co-operative Development Manager
Ontario Co-operative Association
[email protected]
519.763.8271 x23

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