Considerations for the regulation of a flexible type of co-operative society: co-operative values and principles as limits to the autonomous will of the members
Abstract
The aim of this paper is to argue that, as there is only one type of enterprise for conducting economic and social business under the co-operative model (unlike the various types of corporations available), there is a need for the different legal systems to regulate a co-operative type of company which overcomes the existing models of co-operativism (the classic model, also known as social, and the economic model, also known as functional). An organisational structure needs to be designed that is suitable for developing a co-operative project more in line with either the economic model or with the social model or based on an SME or on a large cooperative, according to the members’ needs and objectives. This involves articulating a flexible model of legal regulation of the co-operative type of society, in which co-operatives themselves can regulate themselves through the provisions approved by their members and included in their articles of association. They must only be constrained by co-operative values and principles. These are sufficiently broad to allow the formation of a cooperative society as a genuinely participatory democratic structure, free from restrictions from the past, open, attractive (from the point of view of its usefulness) and in line with the times, in which its members can see their needs met and their views represented, on the basis of mutual help. In my view, opposition to this approach has no legal or logical basis, but can only serve the interests of those who seek to avoid unwanted competition. Unless this approach is adopted, the co-operative model could be marginalised, to the benefit of truly capitalist options.
Received: 28 October 2023
Accepted: 10 June 2024
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References
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