5. COOPERATIVES:
Cooperatives are governed by the Cooperatives Societies Act of 2000 as well as being subject to general business law.
A registered cooperative is a body corporate with a legal personality separate from its members.
Establishment procedure: Establishment is not necessarily complex, but the Registrar has discretion whether or not to allow registration.
Finance: The availability of finance will depend solely on the particular circumstances.
Continuity of existence: The cooperative has an existence independent of its members.
Limitation of Liability: Members’ liability is limited by the amount of share capital they subscribe for, and the rules of the cooperative.
Control of the organisation: The organisation is ultimately controlled by members but its business is controlled by a board of directors (like in a company).
Formalities: There are certain formalities involved in the cooperative form of business but these are not unduly burdensome.
Admitting new investors: Shares can be bought with few restrictions.
Tax implications: There are particular tax laws relating to cooperatives, one advantage of which is that a cooperative will pay tax on any trading surplus at company rates.
Cooperatives are governed by the Cooperatives Societies Act of 2000 as well as being subject to general business law.
A registered cooperative is a body corporate with a legal personality separate from its members.
Establishment procedure: Establishment is not necessarily complex, but the Registrar has discretion whether or not to allow registration.
Finance: The availability of finance will depend solely on the particular circumstances.
Continuity of existence: The cooperative has an existence independent of its members.
Limitation of Liability: Members’ liability is limited by the amount of share capital they subscribe for, and the rules of the cooperative.
Control of the organisation: The organisation is ultimately controlled by members but its business is controlled by a board of directors (like in a company).
Formalities: There are certain formalities involved in the cooperative form of business but these are not unduly burdensome.
Admitting new investors: Shares can be bought with few restrictions.
Tax implications: There are particular tax laws relating to cooperatives, one advantage of which is that a cooperative will pay tax on any trading surplus at company rates.
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