Co-operatives

A co-operative is a member-owned business democratically run by its members for the benefit of its members. Co-operatives are based on internationally recognised principles and values as listed on the International Co-operative Alliance. 

How co-operatives operate

Co-operatives are set up to address the economic, social and cultural needs of their members and adhere to the seven principles of co-operation. They operate in various sectors, including housing, energy, retail, and manufacturing.

Key characteristics of co-operative:

• they are corporate bodies with limited liability
• in a co-operative business all members will abide by the principle ‘one-member, one vote’ and this ensures that all participants in a co-op business have an equal say
• they can have various organisational structures (worker, housing, multistakeholder etc) and be set up using different legal structures, as a company or as a society - to choose the most appropriate form, see Co-operative Alternatives
• members are shareholders and co-operatives can distribute profit via dividends and/or interest on shareholding
• co-operative shares are different from company shares. Regardless of the number of shares each member holds, the principle ‘one member, one vote’ applies.