Countdown until overhaul of co-operative law begins

Co-operatives will have a new legal ‘bible’ in just 267 days, Helen Barber, Head of Co-operative Advice at Co-operatives UK, told delegates at the Practitioners Forum. The Co-operative and Community Benefit Societies Act 2014, which is due to come into force next August, will consolidate existing legislation, put it in gender-neutral language and remove anomalies.

All five Industrial and Provident Societies Acts, the Friendly and Industrial and Provident Societies Act 1968 and the Co-operative and Community Benefit Societies Acts 2003 and 2010 will be repealed.

The new act is expected to increase the upper limit for withdrawable share capital from £20,000. Co-operatives UK has recommended a maximum of £100,000. The Treasury will make its recommendation for a new limit next month.

Other areas expected to change include administration, investigations, register of members and electronic submission. Ms Barber said that, to complement the act, Co-operatives UK would publish an updated Handbook of Industrial and Provident Society Law online. “It’s the modern way of doing things and it’s the most efficient way,” she said.