A co-operative is a voluntary trading organisation concerned with economic welfare and not the maximisation of profits.
Co-operatives are usually involved in activities such as:
- primary production
- manufacturing
- trading
- community or social activity.
The members of a co-operative are required to have some form of ongoing relationship in connection with a primary activity of the co-operative.
Co-operatives are:
- a body corporate. They can be formed by five people or corporations and are registered under the Co-operatives Act 1997.
- open to all persons able to use its services and willing to accept the responsibilities of membership
- are democratic organisations controlled by their members, who actively participate in setting policies and making decisions. Active membership is a prerequisite for democratic control.
Advantages
Some advantages of co-operation are:
- the co-operative 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 co-operative matters. That's one member one vote.
- each member has equal rights and obligations by virtue of membership, and not according to the financial stake in the co-operative
- a co-operative can mean increased buying and selling power and reduced processing and handling cost.
For more information about
co-operatives see the Office for Consumer and Business Affairs website. OCBA has also produced a set of
publications for those thinking of registering a co-operative.
More information
On this site
Things to consider when setting up a community organisation
Resources for community organisations
Managing a community organisation
Aboriginal community organisations
Frequently asked questions about community organisations