A new Bill will be introduced in Parliament today [Wednesday 5th
February 2020] which aims to facilitate more capital investment into
co-operatives. The Bill, brought forward by Cardiff North MP, Anna McMorrin, will be read for a first time in the House of Commons on Wednesday 5th February.
The
Co-operative and Community Benefit Societies (Environmentally
Sustainable Investment) Bill proposes a way for co-operatives to grow
and develop their businesses whilst enhancing their commitment to member
ownership and control. Also known as the Green Share Bill, it will
focus new funds on environmentally sustainable investments within this
important business sector.
The
Bill also introduces new provisions including an option restricting the
demutualisation of co-operatives into companies and the distribution of
their legacy assets.
It takes forward a key recommendation of The Ownership Commission and builds on similar legislation seen in other parts of the world.
Mutuo’s Managing Partner, Peter Hunt, said,
‘The
challenge has been to amend the capital regime for co-ops and community
benefit societies, to permit the injection of external capital, whilst
enhancing their mutuality. We can point to existing examples of where
this has been achieved in other countries such as Canada, Australia and
The Netherlands.
Anna
McMorrin’s Bill offers an important step forward for these mutuals,
helping to make the business model even more popular for co-ops which
are keen to take advantage of their high levels of trust among customers
and members.’
