I was addressing whether a bencom can be a co-op. I was not discussing whether an IPS bencom can be an IPS bona fide co-op. As Sean states an IPS is registered as either a society for the benefit of the community or a bona fide co-operative, however that does not mean that a bencom cannot be a co-operative. There is no one legal form for co-ops in law. Identification of a co-op is through the International Co-operative Alliance statement of identity. It is not possible to conform to the ICA statement and only exist to create member benefit. Principle One: if co-ops only existed to benefit members then membership would not be open and voluntary. Principle Five: includes education of the wider community. Principle Six: co-operation amongst co-ops. Principle Seven: care for the community.

So, four out of the seven principles involve more than member benefit.

Also some of the values from the ICA statement are; equality, equity, solidarity, honesty, openness, social responsibility and caring for others. Now again this is about more than just mutual benefit or enlightened self interest.

Even the “…common economic, social, and cultural needs and aspirations…” mentioned in the definition is about more than just benefiting members. Is it not that most people have a common social need for a safe stable community beyond their own door?

At the beginning of the model rules for a community co-op the objects state that the co-op exists to benefit the community it was established to serve, it does not say that it exists to benefit only its members.

Although very closely aligned there are employee owned businesses that are not co-ops. That is because they have chosen to not be co-ops, not to buy into, identify with and act by the ICA statement. They do not conform to the full set of co-op values and principles. That is not to say that these are not principled values based businesses. Just that they subscribe to a different set of values and principles. So for example a worker co-operative is a type of employee owned enterprise with values and principles beyond just creating member benefit.

Similarly there are mutual’s that are not co-ops, that do not subscribe to co-op values and principles, that have a different set of values. So for example a consumer co-op is a type of mutual owned by its customers with values and principles beyond only mutual benefit.

The Co-operative Groups recent branding talks about, “The Co-operative, Good for Everyone
“, It does not say, “The Co-operative, Good for just its Members”.

CICs are used to create some community benefit but do not have the guarantee of democracy both IPS bencoms (community benefit societies) and IPS co-ops (co-operative societies) have.

The Schools Co-operative Society does not seem to have been registered with the FSA yet, so I don’t know about that.
I don’t think the FSA would agree that a bencom can be a co-op. They quite specifically ask whether it is for member or community benefit.

You can decide (and should according to the Principles) to do some CSR as a co-op but members can vote not to. Any objects can be changed.

Co-ops always have the option of voting to distribute assets amongst members, I don’t know if that is why Shared Interest has a charity- to remove assets from the co-op members’ control?

Co-ops are not intended to be used for the benefit of all, and legislation backs that, at the moment. A community benefit society can have a legally enforceable asset lock creating commonly-owned assets but co-ops don’t.

Energy4All schemes are set up as co-ops and this matches their need for well-rewarded high-risk capital provided by members. A bencom set up for the same purpose might well find that there was no cash left after rewarding investors and so community benefit would be limited. E4All’s model allows local people to receive a cash compensation for having a turbine near them and are set up for member benefit- ideal co-ops. Non-investors looking at the turbine out of their window are not benefitted in the same way.

It does matter whether an organisation is a co-operative society or a community benfit society. It also matters whether you fill up with diesel or petrol but people get that wrong, too. Not all hydrocarbons are the same, it is worth asking if you are not sure.

I expect you agree wholeheartedly with all this, Paul?

Such as The Schools Co-operative Society
“The Schools Co-operative Society…….from its inception it will operate as a co-operative.”
“The Co-operative College has recently overseen the development of a new co-operative organisation which is being registered as a society for the Benefit of the Community – generally known as a Bencom.”
http://www.co-op.ac.uk/schools-and-young-people/co-operative-schools/co-operative-society/

Also Shared Interest
“So what exactly is Shared Interest?
We are an ethical investment co-operative.”
http://www.shared-interest.com/

So a bencom can be a co-op and co-ops can work for community benefit.
A co-operative is not a specific legal form. It is a set of values and principles in action.
http://www.ica.coop/coop/principles.html

For an IPS bona fide co-operative working in community owned renewable energy see http://www.communitypowercornwall.coop