Legal News for UK Co-ops and Mutuals
This is a blog where brief information about developments in UK Co-op and mutual law will be reported. Readers of this blog will also find Linda Barlow's Co-operatives UK Blog at http://www.uk.coop/blogs/linda.barlow helpful. For an network of academics working on co-ops, mutuals and social enterprises visit http://blogs.kent.ac.uk/r-comuse/2012/09/welcome-to-r-comuse/
- Name: Ian Snaith
- Location: Leicestershire, United Kingdom
Interested in sharing information and knowledge around legal issues for co-ops and social enterprises in the co-oplawnews blog and thoughts on random issues in the "real" blog.
Thursday, December 10, 2009
Presbyterian Mutual Society Working Group
In the meantime the collapse of this Society into administration led initially to the immediate application of the adminitration procedure to Northern Irish I & P societies. This has not yet been done in GB.
Less directly, it has alsoled to a review of the Northern Ireland Credit Union and I & P Law (see paras 4.7.-4.15 on credit unions and 4.30. -4.40 on I & P's) and ripples in the UK (see pages 161-162 of this Consultation Document from HM Treasury)
In essence, NI credit unions would come under FSMA alongside their GB bretheren and thus enjoy the shelter of the Financial Services Compensation Scheme but their registration would stay with the Northern Ireland devolved Government as that what the movement there wants. I & P's will stay with NI but may get Law Reform along GB lines while also having to spell out ultra clearly to people with shares in them that this is risk capital and NOT protected as a deposit.
In GB, as in NI,the idea would be to apply the financial promotion regime (whereby any promotion of an investment has to be approved by a regulated person) to I & P shares - at least if they are not bound by of an effective Code of Practice (as Co-operativeUK's members are) which makes them tell people with shares that they have risk capital and not a deposit or savings and will lose the lot if there's a problem with the society's solvency.
Co-op Law Reform in the Republic of Ireland
Tougher Liquidity and Capital Requirements for Credit Unions
Re-launch of Co-operative and Community Benefit Societies and Credit Unions Bill
It is a very useful measure and is an important part of the process of updating industrial and provident society and credit union law.
Hope it makes it this time.
Law Reform Progress for I & P Societies and Credit Unions
It follows on from the previous consultation documents and process.
Commencement seems to have gone back to 1st July 2010. The liberalisation of share capital rules (abolition of the £20,000 limit for non-withdrawable shareholdings) is probably the most exciting aspect for I & P's. For credit unions there are many new features, including: the possibility of corporate members; the possibility of paying interest rather than dividend on share capital; and a redefinition and further relaxation of the common bond concept.