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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