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Does size matter
- 2. There has been a catastrophic failure of governance in The Co-operative Group ‘Something must be done’ Is this a failure of co-operative democracy? Must larger co-operatives be run more like plcs? Is it time to admit defeat and ditch democratic accountability? Or was it something else which failed?
- 3. Members elect area boards Area boards elect regional boards Regional boards elect the national board The national board appoints the Bank’s board Would this be called democracy in any other context? Imagine the outcry if such a system were proposed for a newly independent Scotland
- 4. Does it mean having the same systems but nicer people on the board? Does it mean having the same systems but more competent people on the board? Does it mean having the same systems but more people like us on the board? Or do we mean something else?
- 5. People can feel disempowered by democracy. This happens especially when a democracy is large, there are few routes to influence decisions and people feel they are ignored Most people want:◦ Their voice to be heard ◦ To be able to influence important decisions ◦ To be able to influence the decisions that affect them directly ◦ Their own way – but you can’t have everything!
- 6. There is a members meeting once a year about 15 miles away I can vote for an area board representative I could stand for the area board – but I don’t have the time For me, like most of The Co-operative Group’s 7 million members, that is it It doesn’t have to be that way
- 8. 3.5 million users, 450 staff and 360 members How to get more members and more member involvement? A radical approach still in development:◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ One membership card for all services Electronic data capture on members’ interests Gather usage data to tailor offers AGMs become a celebration – members come together and do things, with a bit of voting tacked on Consult members on the services they actually use Area based members meetings Develop website, facebook, twitter for members to talk to each other and the Society Member offers can be e-mailed, texted, downloaded as apps
- 9. One of the government’s proposed probation mutuals Controversial with significant local union opposition But this mutual was meant to be staff-led. So we asked the staff if they wanted to proceed Electronic secure ballot of all staff: do you want to proceed or not? If not, we stop. Consultation meetings at every workplace first Result: 1084 people balloted; 74% turnout; 669 wanted to proceed; 86 wanted not to proceed; 42 abstained.
- 10. 100 year old holiday co-operative 5 years ago an ageing and declining membership Membership up from 29000 to 34000 in 5 years. Member shareholdings doubled Member recruitment touchpoints at hotels Regular electronic member communications Offers and discounts to members and enhanced offers to investor members AGM is part of a celebration weekend at one of HF’s hotels – huge increase in attendance
- 11. There should be a menu, with different ways for people to be involved at times and places to suit their lives. Some ideas are:- A single membership card for trading and involvement Consultation (and meetings?) at store or service level Social events and activities for members only Passive receipt of electronic information by e-mail, text, app – Co-op Group offers, Co-op News etc ◦ Active two way communications – discussion forums, facebook, twitter, blogs, Survey Monkeys ◦ Direct elections to the board ◦ Referenda on Key issues ◦ ◦ ◦ ◦
- 12. We should not mean a small number of people being elected by an otherwise passive membership We should mean an active and involved membership with many ways to be involved We should mean thousands of members involved in the Society every week – at home, on the bus, in the pub, at 10am, 2pm, 4am And large co-operatives have the resources to do this Size doesn’t matter – commitment does
Notas del editor
- POINTS OF NOTEThese legal forms cover over 99% of the legal forms used by co-operatives under English and Welsh law.Some of these legal forms are much more commonly used than others.The aim in covering all these structures is to be comprehensive about the options available.
- POINTS OF NOTEIt is important to note that all the main legal forms for co-operatives have been in a state of flux.This may mean that training people received a few years ago is out of date or that their current rules are out of date or that they now have an inappropriate legal form.The Community Interest Company is a new legal form bolted onto the company form.The Companies Act 2006 is the largest single Act of Parliament in history. It makes major and significant changes to company law.The Charities Act 2006 was more of a consolidation Act. In other words it brought into one place rulings by the Charity Commission or Court judgments over the years, but there is little fundamentally new.A Legislative Reform Order can only make changes within the framework of the existing law. Hence there is nothing fundamental in the proposed changes. The LRO is expected to become law in February 2010.
- POINTS OF NOTEIt is important to note that all the main legal forms for co-operatives have been in a state of flux.This may mean that training people received a few years ago is out of date or that their current rules are out of date or that they now have an inappropriate legal form.The Community Interest Company is a new legal form bolted onto the company form.The Companies Act 2006 is the largest single Act of Parliament in history. It makes major and significant changes to company law.The Charities Act 2006 was more of a consolidation Act. In other words it brought into one place rulings by the Charity Commission or Court judgments over the years, but there is little fundamentally new.A Legislative Reform Order can only make changes within the framework of the existing law. Hence there is nothing fundamental in the proposed changes. The LRO is expected to become law in February 2010.
- POINTS OF NOTEIt is important to note that all the main legal forms for co-operatives have been in a state of flux.This may mean that training people received a few years ago is out of date or that their current rules are out of date or that they now have an inappropriate legal form.The Community Interest Company is a new legal form bolted onto the company form.The Companies Act 2006 is the largest single Act of Parliament in history. It makes major and significant changes to company law.The Charities Act 2006 was more of a consolidation Act. In other words it brought into one place rulings by the Charity Commission or Court judgments over the years, but there is little fundamentally new.A Legislative Reform Order can only make changes within the framework of the existing law. Hence there is nothing fundamental in the proposed changes. The LRO is expected to become law in February 2010.
- POINTS OF NOTERarely used.To explain the last point in more detail. A partnership is not taxed itself. Its members are taxed. Therefore if the members of a LLP are exempt from paying Corporation Tax (as is the case with charities) then there is nowhere in the entire structure which is liable for Corporation Tax. Of course, this does not mean exemption from other taxes such as PAYE or VAT.
- POINTS OF NOTEA new company form which only became available in July 2005. It is increasingly being used in the social enterprise sector.The community interest statement must pass the ‘reasonable person test’ – the regulator must be satisfied that a reasonable person would view the company as being for the benefit of the community.The assets of the company are locked in for community benefit. Whilst this does not preclude the paying of wages to directors or a limited distribution of profits, most of the wealth of the CIC must be locked in for community benefit.