Australian Co-operative Glossary
The effectiveness of a co-operative director depends in large part on them
having an understanding of the various governance terms that arise when
performing their duties.
In 2002, CDS published the
Australian Co-operative Glossary
to provide co-operative directors with an alphabetical
reference of over 570 co-operative,
financial, business and human resources terms that
they are likely to encounter while fulfilling their governance duties.
The following is an extract from the glossary of co-operative and related
definitions that are commonly used in Australia.
Email CDS
to purchase the latest edition of this essential resource.
Active member
Cardinal stakeholder group
Community buyout
Community enterprise
Consumer co-operative
Co-operative
Co-operative company
Co-operative principles
Co-operative values
Co-operatives Act
Corporation
Member
Mutual
Mutuality principle
Non trading co-operative
Primary activity
Private enterprise
Registrar of Co-operatives
Social enterprise
Trading co-operative
Active member
An active member is a person who maintains a relationship with a
co-operative, either by purchasing or supplying goods
or services, paying
an annual subscription
(non trading co-operatives
only), or having another form
of relationship such as having a child enrolled at a child care co-operative or
being a tenant of a housing co-operative. Once a member ceases
to be active in accordance with the co-operative's rules, the members'
membership is cancelled.
Cardinal stakeholder group
The group that a business or an
organisation was established to serve. In a
for-profit company for example, the cardinal stakeholder group are its
investor owners. In contrast, the cardinal stakeholder group of a co-operative
are the
users of its services, whether they be small businesses, consumers, parents or
tenants.
Community enterprise
A community enterprise is a business that is owned, controlled
and used by the people who live in a defined locality. Membership of a
community enterprise is voluntary and open to the general public.
A community enterprise is a sustainable organisation that does not rely on
charitable donations or government grants or subsidies for its continued
existence. Most community enterprises in Australia are incorporated as
co-operatives.
Click here
for links to Australian co-operatives that operate as community enterprises.
Community buyout
A community buyout occurs when members of the public purchase an existing
business
that is threatened with closure. In Australia, community buyouts usually occur
in small rural communities where the business threatened with closure provides
an essential service such as a general store, petrol station or hotel. A
community buyout usually results in the formation of a community enterprise
incorporated as a co-operative.
Consumer co-operative
A consumer co-operative is a business that aggregates the purchasing
power of individuals and families to provide cheaper prices for goods and
services and/or to obtain goods and services that would otherwise be
unavailable.
Consumer co-operatives can either operate as a community enterprise or a buying
group among individuals with a common need.
Co-operative
A co-operative is a type of business that is owned and controlled by the persons
who use the services provided by the co-operative. In Australia, a co-operative
is a corporation registered under state or territory co-operatives
legislation.
Co-operative company
A company that is structured as a co-operative. Some large agricultural
co-operatives in
the
Australian state of Victoria are incorporated as companies because they were
formed before Victoria's first co-operatives legislation in 1953.
Co-operative principles
The co-operative principles are a set of seven
principles
adopted by the
International Co-operative Alliance
in
1995 to guide co-operative practice around the world. The principles form the
basis of co-operatives legislation in Australia.
Co-operative values
A co-operative is based on the values of self-help,
self-responsibility, democracy, equality, equity and solidarity. Self help,
expressed through mutual action as a group, provides the motivation
for self reliance and assuming responsibility for taking control of one's own
affairs.
Democracy and equity sustain the solidarity of the group by ensuring
that no individual member can secure power or gain advantage at the detriment
of other members.
Co-operatives Act
An act of a Australian state or territory parliament that regulates non
financial co-operatives.
Click here
for links to the various state and territory
Co-operatives Acts.
Corporation
A corporation is a legal entity that has an existence separate from the persons
who are its members. A corporation has the legal capacity of a natural person (a
human being), and has the power to hold property, enter into contracts, and sue
and
be sued in its corporate name. A corporation is also described as an
incorporated body, a
corporate body or a
body corporate. Companies, co-operatives and
incorporated associations are all corporations.
Member
A member is a term used to describe a legal owner of a co-operative. Members
are also
referred to as shareholders in co-operatives with shares.
Mutual
A mutual is an organisation where there is a complete identity between the
participants
in the enterprise and its members, and where the entity's income is derived
from members.
More
Mutuality principle
For an organisation
where members contribute and pool their money to achieve a common purpose, their
contributions (including payments for services) are excluded as assessable
income to the organisation. The principle is that assessable income must be
derived by outside parties (a person cannot make a profit out of himself or
herself). The receipt of surplus funds by a member is merely returning
the recipient's own funds to themselves.
Non trading
co-operative
An Australian 'not-for-profit' co-operative that can be formed with or
without shares. While a
non trading
co-operative can conduct commercial activities, it is prohibited under law to
distribute surplus funds to
members from profits or upon winding up. This type of co-operative is
commonly used to provide social, cultural and recreation services.
More
Primary activity
The primary activity of a co-operative is generally related to the main purpose
of a co-operative, and is used as the basis for determining whether or not a
member is an active member. All co-operatives must have at least one primary
activity.
Private enterprise
A private enterprise is a business or an organisation whose records are not
open to the public, and
includes
proprietary limited companies, co-operatives and incorporated associations.
Registrar of Co-operatives
The Registrar of Co-operatives is a statutory officer created under Australian
co-operatives legislation who
is charged with the
responsiblily for the administration of the legislation. The
Registrar is usually is a senior state/territory government official.
Click here
for contact details of Australian Co-operative Registrars.
Social enterprise
A social enterprise is a not-for-profit organisation that aims to enhance the
social well being of individuals and families. Most social enterprises provide
services to a disadvantaged
group in the community such as indigenous people, the unemployed, persons
with
disabilites or the elderly.
A social enterprise usually relies on
government funding and/or charitable
donations for its continued existence.
In Australia, most social enterprises
are registered as either a company limited by guarantee or an incorporated
association.
Co-operatives are prominent in indigenous, housing and children's services.
Click here
for links to Australian co-operatives that operate as social
enterprises.
Trading
co-operative
An Australian co-operative that can distribute surplus funds to
members, and members can share in the assets of the co-operative upon winding
up.
Trading
co-operatives must have share capital. This type of co-operative is used for
commercial activities such business services, buying groups, and
agricultural, fish marketing and forestry services.
More
|