Click here for a printer friendly version.

Co‑operative Consortium

General Characteristics

Essentially this is a specific application of the consumer co‑operative structure, but where the members are small businesses or the self-employed and the role of the co‑operative is to help them improve their business performance. Members generally pay a percentage of their earnings into the co‑operative.

The consortium structure can be used by non-profit voluntary or community organisations to provide themselves with shared services.

In common with other forms of co‑operative, control is normally exercised on a one member, one vote basis; the governing body is elected by and from the membership; and - although operated fundamentally as a business - there is a strong commitment to social welfare, sustainability, and support for the community.

Ownership: a co‑operative consortium is owned by its members, being those who use the services it provides.

Charitable status: a co‑operative consortium will not be eligible for charitable status.

Examples of Use

Taxi-drivers' co‑operatives (the co‑operative provides self-employed taxi drivers with shares services such as radio booking, advertising etc); actors' agencies (the co‑operative acts as agent for the actor members); marketing co‑operatives.

Legal Forms Used

Most are either companies limited by guarantee or industrial and provident societies, though a consortium can be registered as a company limited by shares.

Profit Distribution

Any distribution of profits to members is in effect a rebate on overpaid fees for services provided, and thus will commonly be allowed. However, a co‑operative consortium making a surplus on members' fees may just reduce its charges instead.

Participation Issues

Participation in a co‑operative consortium will generally be restricted to members.

Many consortiums take advantage of tax benefits available to mutual trading organisations, which require that all service-users are members and only service-users are members.

[Credit Union] [Marketing Co‑operative] [Agricultural/Fisheries Co‑operative] [Housing Co‑operative] [Club (Members' Club) ] [Tenants'/Residents' Association] [Estate Management Board] [Partnership] [Social Firm] [Football Supporters' Trust] [Charity] [Development Trust] [Social Enterprise] [Community Enterprise] [Resources] [Links] [Enquiries] [Contact Us]