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Co-Operative - Coggle Diagram
Co-Operative
Definition
Is owned and controlled by its members. It is run in a democratic manner. Each member has an equal say in the running of the co-operative.
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Formation
Must have a minimum of 7 members and there is no maximum.
Must register with Registry of friendly societies and the Revenue commissioners. 4 types of Co-operative
Finance
Equity finance is raised by issuing shares, which can be purchased by members of the co-op.
Members have one vote per person rather than one vote per share
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Control/ Decision making
Members own and control the co-op. They appoint a management committee to run the business day to day
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Advantages
- Limited liability 2.Taxation 3. Continuity of existence 4. democratic decision making
Disadvantages
- Lack of capital 2. Registeration 3. Profits 4. Confidentiality.
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Worker
The co-op is owned and managed by people who work in the business. It often occurs as a result of worker buy-out.
EX: Bridge Street Co-op Co. Cork
Financial
Credit unions are the most common ex of a financial co-op. Owned and run by members who have a common bond eg occupation. Members save together and then lend to each other at a low rate of interest.
Surplus income is given as a dividend to members or used to pay for improved services.
EX: Lisduggan Credit union
Producer
Tends to be found in the agri-business sector. A group of producers set up their own processing facility. Ex a group of dairy farmers sell their produce to the co-op and it is processed into a finished product. Processing adds value and farmers can sell it at a higher price.
EX: Aurivo Co-op Society Ltd