Formation
Formation
Last Updated on Tuesday, 20 July 2010 09:46 Written by David Griffiths Friday, 16 April 2010 03:57
In seeking advice on the co-operative option, it is critical to seek advice from those who have experience with and knowledge of the co-operative option - not from those who either don't understand and/or oppose the co-operative model:
EIGHT STEPS IN FORMING A CO-OPERATIVE
PHASE I - DEVELOP THE CO-OPERATIVE BUSINESS IDEA
Step 1: Assemble a group of interested people
Identify the needs to be met:
- unavailability or instability of work,
- unavailability of products and services,
- poor quality of products and services,
- products and services that are overpriced,
- market development.
* Identify any relevant professional assistance needed to launch the business:
- legal consultant,
- co-operative developer,
- feasibility study, business plan and financial consultant,
- accounting consultant,
- other
It is critical, however, to assess the co-operative experience and knowledge of any consultant.
Step 2: Conduct a pre-feasibility study
* Conduct a preliminary market and membership review
* Identify available and relevant technical and financial assistance
* Assess receptiveness to the co-operative business in the local community? and to potential members.
* Evaluate if the co-operative is the best legal framework to use or if the kind of co-operative selected is the most suitable What kind of co-operative will it be - consumer, marketing, worker, producer, housing, craft, service?
* Define the benefits of the co-operative for members, (eg. quality, price) and characteristics:
- products and services offered (consumers' co-operative)
- or products and services marketed (producers' co-operative)
- or salaries and working conditions (workers' co-operative)
* Determine the potential to attract the minimum number of members required and who will be members..
If this study is not conclusive, the group should re-evaluate its business idea. If this study shows that the planned co-operative is feasible, you can proceed to the second phase.
PHASE II - CO-ORDINATE THE PRE CO-OPERATIVE'S ACTIVITIES
Step 3: Co-operative Education
Establish a study group of potential members to consider the co-operative option - including the co-operative values and principles, the meaning and practice of member ownership and control, the co-operative difference and the history of co-operatives. in Victoria, Australia and overseas.
Step 4: Convene a meeting
The meeting will discuss the reason for establishing a co-operative, the purpose and structure of a co-operative and subsequently decide on:
* The co-operative's mission (objectives, purpose)
*?A name for the co-operative.
* The proposed rules for the co-operative.
*?A temporary steering committee
Step 5: Submit the rules to the Registrar of Co-operatives
The rules of the co-operative have to be submitted to the Registrar of Co-operatives before the co-operative can be formed.
PHASE III - ORGANIZE AND START UP THE CO-OPERATIVE
Once the Registrar of Co-operatives has approved the Rules, you can proceed to a formation meeting:
Step 6: Hold the formation meeting
* Adopt the rules approved bty the Registrar of Co-operatives
* Adopt the business plan
* Approve the co-operative's initial membership
* Appoint an external auditor
* Elect the members of the board of directors
Step 7: Lodge the registration papers with the Registrar of Co-operatives
To be registered you have to submit the following documents to the Registrar of Co-operatives:
- The rules adopted by the meeting and signed by the chair and secretary. certifying that they were approved.
- An application to register form signed by two directors and three other members.
- A typed list of directors with full names, home addresses, occupations and dates and places of birth.
- If required, a disclosure statement signed by the chair and secretary of the formation meeting certifying that it was presented.
- The application fee.
Step 8: Organize the co-operative
Once your registration has been approved and you receive a registration certificate you can proceed with the next steps.
Operations
Start-up financing
Staff
Compliance
The Co-op Start Up Manual published by Co-operatives Victoria and written by Graeme Charles is a starting point for all those interested in forming co-operatives. Co-operatives Victoria has a number of other useful publications:
What is a co-operative?
The Co-operative Formation Decision
Why do co-operatives fail as co-operatives?
The Co-operative College in the UK is a rich source of information:
The Just Ask membership toolkit
The Rochdale Pioneers Museum.
The following background information can be obtained from the web site of the International Co-operative Alliance:
The definition of a co-operative
The statement on co-operative identity,
Statistical information on the co-operative movement
The following statements issued by Co-operatives Australia provide a valuable context to co-operation and co-operatives:
Public Policy and Co-operatives (April 2009)
Australia's Top 100 Co-operatives, Credit Unions and Mutuals (June 2009)
Co-operative Education (March 2010)
Valuing Co-operation (April 2010)
National Co-op Update was published by Words in Time between 1995 and 2002. Forty issues were published.
By arrangement with Words in Time pdf copies of National Co-op Update are available on this web site.
Copies of National Co-op Update can be downloaded as pdf files and printed. The files, however, cannot be changed or the content copied or extracted.