From: "Julian Bradley" <[log in to unmask]>
Sent: Sunday, March 28, 2004 9:39 PM
> Has anyone been involved with a co-op that started as a company limited by
> guarantee (probably the commonest situation) changing its constitution,
> management etc in this new era, maybe changing into a Community Benefit
> Society (CBS).
>
> Management are keen on this but any change in the co-op constitution
> requires a vote by members. What should they know - good / bad / not our
> problem any more?
Not very likely to have happened yet since the new legislation to set up the
community interest companies isn't likely to go through for about a year.
The NAGPC has done some work with a firm of specialist solicitors in
Manchester who are interest in mutual societies and there are three co-ops
in Kent who are joining together to form one of these new so-called
community mutual interest organisations. At the NAGPC meeting early March
there was slight puzzlement about the advantages of these bodies in
particular what investment the public was making (they are part of the
"mutual" stakeholders) since even if the public do nothing they will get the
service as it's the responsibility of the PCO to ensure it's there.
The benefit of the company limited by guarantee is that it is a well known
and recognised legal entity and is understood by accountants, lawyers and
the Inland Revenue and it limits the liability of the shareholders. The
NAGPC advice (on their website) is to hang onto the CLG structure for the
time being.
There are goodwill issues for co-ops too but I haven't yet worked them out
fully. Don't hand the co-op over to the PCO until you have checked this
out - it may be worth more than you think!
--
Fay
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