Issue No 10, July 1998.

NOTICE: Hard copies of the Australian New Crops Newsletter are available from the publisher, Dr Rob Fletcher. Details of availability are included in the Advice on Publications Available.

13. What is a cooperative?

A cooperative is an entity voluntarily owned and controlled by the people for whom it was established and who use its services. It may be formed for the provision of goods or services to its members or for the marketing of members' products, goods and services to the general public.

There are two types of cooperative.

Trading cooperatives have share capital and they may distribute profits.
Non-trading cooperatives which do not distribute profits or surpluses to members; they may or may not have share capital.

A cooperative is a corporation. It can be formed by five or more people or corporations and is registered under the Cooperatives Act 1997.

A registered cooperative's functions are included in its rules as primary activities. Those activities reflect the cooperative's involvement in areas such as primary production, manufacturing, trading, community or social activity.

A cooperative can deliver several advantages:

The cooperative form of enterprise is specially suited for meeting the collective needs of members, whether they are producers, consumers or workers.
Each member has an equal say in cooperative matters through the principle of one member, one vote.
A cooperative can deliver economies of scale by increased buying or selling power and reduced processing or handling costs.
There are also taxation benefits available.

Cooperatives are different from other business structures through seven principles of cooperation which are central to the operation and establishment of cooperatives:

Open and voluntary membership - to all willing to accept the responsibilities of membership; the member service criterion provides for a more localised focus of activity, perhaps explaining why there is a low failure rate for cooperatives.
Democratic member control - active cooperative members each have one vote.
Limited interest (if any) paid on shares - this ensures that the operations are focussed on servicing the members' needs. In the case of a trading cooperative, surpluses are normally distributed to members in proportion to business done with the cooperative.
Autonomy and Independence - cooperatives are autonomous, self-help organisations controlled by their members.
Education, training and information - cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the develop- ment of their cooperatives.
Cooperation between cooperatives - at a local, state, national and international level to enhance the cooperative movement.
Concern for community - cooperatives work for the sustainable development of their communities through policies accepted by their members.

The Office of Consumer Affairs Queensland provides advice on legislative and practical matters in relation to the formation, operation, merging or winding up of a cooperative; approves disclosure statements for members' information; maintains a register of cooperatives under the Cooperatives Act 1997 (which includes the registration of their rules and all alterations, special resolutions, audited accounts, list of directors and officers and charges given over their assets in order to secure any borrowing by the cooperatives) and provides search facilities for persons wishing to search registers or documents or to obtain copies of available documents.

Further information in Queensland is available from:

Registry of Cooperatives
Office of Consumer Affairs
GPO Box 3111
Brisbane Qld 4001
Telephone: 07 3239 6113 or
07 3239 3588 or 07 3239 3630
Facsimile: 07 3220 0027

Consumer Affairs/Fair Trading Offices in other states are listed elsewhere.

Any claims made by authors in the Australian New Crops Newsletter are presented by the Editors in good faith. Readers would be wise to critically examine the circumstances associated with any claims to determine the applicability of such claims to their specific set of circumstances. This material can be reproduced, with the provision that the source and the author (or editors, if applicable) are acknowledged and the use is for information or educational purposes. Contact with the original author is probably wise since the material may require updating or amendment if used in other publications. Material sourced from the Australian New Crops Newsletter cannot be used out of context or for commercial purposes not related to its original purpose in the newsletter

Contact: Dr Rob Fletcher, School of Land and Food, The University of Queensland Gatton College, 4345; Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112; International facsimile: 61 7 5460 1112; Email: r.fletcher@mailbox.uq.edu.au

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originally created by: GK; latest update 6 June 1999 by: RF