Introduce a Co-operative Economy Act

A legal framework tailored to the needs of co-operatives and supportive of their future development.
A Co-operative Economy Act must address the current disincentives to co-operative growth that exist in regulation and law, ensure co-operative wealth is rooted in the wider co-operative economy, and create the conditions for the accumulation of co-operative capital and commercial expansion.
A Co-operative Economy Act should establish the legal framework, financial instruments and institutional mechanisms needed to:
- Create an asset lock and common indivisible reserves
An asset lock would ensure there can never be a benefit from ‘cashing out’ via liquidating or selling the co-operative, keeping co-operatively earned wealth within the co-operative economy. - Introduce a right to own
A right to own would support employee buyouts and the co-operatisation of existing businesses. - Introduce a duty to develop the diversity of corporate form
The government must provide official recognition of co‑operatives as inclusive business models, and introduce a new statutory duty to foster diversity of corporate forms to help enable a new culture of co‑operative entrepreneurship, and broader pluralism of ownership in the economy as a whole. - Establish a Co-operative Development Agency
To strengthen the development of the sector, a Co-operative Development Agency for England and Northern Ireland should be established on a statutory basis. This would mirror the institutional support provided to co-operatives in Scotland and Wales.
Tags Democratic ownership
Policy in practice
Projects that demonstrate the benefits or may be helped by polices like this.
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Schools’ Energy Co-operative
Schools’ Energy Co-operative has installed solar panels on schools across the country, working with a network of local groups. -
North West Mutual
Community bank will help local businesses and individuals neglected by mainstream banks. -
Aardman
Founders of UK’s biggest animation company handed 75% share to employees to ‘safeguard independence’. -
Space4
Space4 is a co-working space for social enterprises and worker co-operatives in the digital tech sector. -
People’s Bank
Planned regional, mutually-owned bank aims to boost the economy of the north-east of England. -
Richer Sounds
Founder Julian Richer transferred 60% of his shares into a John Lewis-style trust. -
Avon Mutual
Avon Mutual is one of a new breed of community-owned banks that aim to put people and the planet first. -
Friendly Families nursery
This brand new nursery provides affordable, child-centered care co-produced by parents and staff. -
Riverford Organics
Riverford switched to employee ownership to protect its values and independence in 2018. -
Equal Care Co-op
Co-op matches those seeking care with care workers and professionally trained volunteers.