Move comes after reductions of 33-80% in Government fees impacting oncooperativesThe Minister for Jobs, Enterprise and Innovation, Richard Bruton, T.D.,
today announced the commencement of new legislation to ease the
regulatory burden on co-operative societies and make it easier to start up
and run a co-op as an alternative form of enterprise organisation.
This follows the introduction, in December 2012, of reductions of 33-80% in
the fees for business transacted with the Register of Friendly Societies,
who registers co-operative societies. These moves form part of the delivery
of the Programme for Government commitment to promote co-ops as a form of
enterprise.
This legislation will ease the regulatory burden on co-operative societies
and make it easier to run a co-operative as an alternative form of
enterprise organisation. Because of their importance the Government has
committed to assisting this particular form of enterprise to expand,
develop and to continue to have a positive impact on business in this
country. In particular the legislation will:
Ø Allow individual societies to set their own limit on individual
shareholdings in the society
Ø Ease financial reporting restrictions by extending the period for the
preparation and submission of the annual return and accounts
Ø Make it easier for cancelled societies to be restored to the register
Ø Ease fund-raising restrictions for non-agricultural societies
In addition, the legislation will make the Examinership process, currently
available only to companies, an option for co-operative societies which
might find themselves in difficulties (these provisions will be commenced
once the Rules of Court are amended).
Finally, the Act also makes changes to the legislation governing friendly
societies. There are currently just 47 friendly societies (mostly
charitable or benevolent societies) registered with the Registrar of
Friendly Societies, and many of these have relatively low levels of
activity. There have been just three new entrants to this group in the
last 9 years, and it is clear that this nineteenth-century model has
out-lived its usefulness and is ill-suited to meeting the needs of the
twenty-first century.
Making the announcement, Minister Bruton said:
“If we are to sustain the progress we have made in the economy and create
jobs we will have to continue working hard to reduce business costs and red
tape. A crucial part of this will be to reduce those costs and red tape
which are directly under the control of government.
“As we recognised in the Programme for Government, forms of enterprise
organisation other than the company can play a role in meeting needs in
different sectors, and I am determined to ensure the legislation governing
these models supports business development and that the burden of red tape
is kept to a minimum.
“The Government recognises that co-operatives play a very significant role
in our economic and social development, whether it is through the livestock
marts that operate in nearly every county, group water schemes or housing
co-operatives which provide affordable housing to people with modest
incomes. Co-operatives are rooted in the community and offer jobs to local
people.
“This legislation addresses particular problems which have been identified
in the co-operative sector, and will help ensure that this model can thrive
and grow to its potential”.
The Minister added that the Charities Regulatory Authority, established
earlier this year, would provide an appropriate regulatory environment for
charitable and benevolent groups and societies, ensuring that there is a
suitable framework in place for the proper regulation of such groups into
the future.