The province of Manitoba is changing the rules governing how co-op businesses are structured to allow for multiple classes of membership.
The province has announced it will amend its Co-operatives Act to allow groups that would normally form separate co-ops, such as workers and consumers, to combine their resources to create a co-op together. The proposed changes come out of a multi-year strategy developed in partnership with the co-op sector.
Family Services and Consumer Affairs Minister Gord Mackintosh said in a press release that while the current act works for many co-ops, many want and need this option to start new co-ops.
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“Some people join co-ops because it is in their financial interest, but others join co-ops because they support the values that the co-op stands for,” he said.
Vera Goussaert, executive director of the Manitoba Co-operatives Association says the move will spur new co-op development in Manitoba.
“This allows different groups to join together with a vested interest in something,” she said, adding that a major advantage of a multiple- membership co-op is increased access to capital.
In other provinces, such as Quebec, where multi-stakeholder legislation already exists, creation of multiple-member co-ops is brisk and multi-stakeholder co-ops now the primary form of incorporation.
“It’s been very successful elsewhere,” said Goussaert.
Brendan Reimer, the regional co-ordinator for the Canadian Community Economic Development Network said the new legislation can help address some of the challenges to starting co-ops.
“If the challenge seems too big in terms of getting enough members and enough capital… this might open it up,” he said. “Part of getting in different partners is you can build a stronger team around an idea.”
Reimer said new and interesting co-ops are very likely to develop around this new model.
This could, for example, allow for the creation of new kinds of food co-ops, allowing both consumers and farmers and any other
potential partner desired to join forces, he said.
“In rural Manitoba you’ve had grocery stores closed and some have turned into co-ops…a multi-stakeholder model would allow the municipality to be a member. Or you could have the credit union be a member. You could have different organizations come in as members.”
The proposed amendments would further modernize the existing act by:
updating provisions for worker co-operatives to enable them to use more flexible business models by allowing volunteers and contracting parties to become members;
enabling co-ops to hold meetings and vote electronically;
reforming provisions on access to membership lists to better balance the privacy and democratic rights of members; and
reforming the special tribunal that hears appeals from members of housing co-ops who face eviction by providing them with enhanced procedural protections.
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“Partofgettingindifferentpartnersisyoucanbuildastrongerteamaroundanidea.”
– BRENDAN REIMER, REGIONAL CO-ORDINATOR FOR THE CANADIAN COMMUNITY ECONOMIC DEVELOPMENT NETWORK
