Legal News for UK Co-ops and Mutuals

This is a blog where brief information about developments in UK Co-op and mutual law will be reported. Readers of this blog will also find Linda Barlow's Co-operatives UK Blog at helpful. For an network of academics working on co-ops, mutuals and social enterprises visit

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Location: Leicestershire, United Kingdom

Interested in sharing information and knowledge around legal issues for co-ops and social enterprises in the co-oplawnews blog and thoughts on random issues in the "real" blog.

Thursday, April 05, 2007

Investor Members Allowed in GB Co-ops

The FSA have indicated in a policy document that they are willing, in appropriate cases, to accept the idea of non-user investor members in co-operatives registered as industrial and provident societies.

Visit my web site to read their paper. In essence they will have to be reassured that the "user" members retain control of the co-op (e.g. voting rights of investor members will be limited) and the £20,000 limit will apply to shares held by investors who are not other industrial and provident societies. Only risk capital (i.e. shares) can be issued in this way and the investors must be warned of this. Co-ops wishing to do this must get legal advice.

© Ian Snaith 2006
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