05 September 2014 by Alexandra Jones
The law governing societies and co-operatives has been simplified and consolidated into one Act, the Co-operative and Community Benefit Societies Act, which commenced on 1 August 2014.
The Act is the fourth consolidation of the legislation relating to societies and co-operatives and is the first time that the law has been put into one principal act.
The Act amalgamates 50 years of co-operative business legislation and promises to make it easier to run different and more ethical forms of business and cut red tape for co-operative enterprises in the UK.
Commenting on the new Act, Ed Mayo, Secretary General of Co-operatives UK, said: ‘Despite the troubles of Britain’s largest consumer co-operative, co-ops have been growing faster than the UK economy over recent years. This landmark Act brings together long-dated, overly complex legislation, into one unified statute, making it easier than ever to set up a co-operative enterprise.
Economic Secretary to the Treasury, Andrea Leadsom MP, added: ‘The Government is committed to supporting mutuals in helping people build a better future for themselves. So I am delighted that the new Co-operatives and Community Benefit Societies Act is now in force - it will cut red tape for the 6,000 co-operatives in the UK and make it easier to run different and more ethical forms of business.’