An industrial and provident society (IPS) was a legal entity for a trading business or voluntary organisation in the United Kingdom, the Republic of Ireland, and New Zealand. The name is still used in New Zealand, the Republic of Ireland and within the UK in Northern Ireland. Recent legal developments in Great Britain
Great Britain include the Co-operative and Community Benefit Societies Act 2014, which has renamed these societies as co-operative or community benefit societies. From 1 August 2014 a new society has had to register as either a co-operative or a community benefit society rather than, as was the case previously, a society that meets either requirement. Societies already registered before that date remain registered under the 2014 Act and under ss 1 & 2 of the 2014 Act all three types of society – co-operative societies, community benefit societies, and societies already registered before 1 August 2014 – are referred to together as "registered societies". However, for administrative purposes the three types of society are categorised separately. The Act applies to Great Britain
Great Britain but not Northern Ireland.
1 Categories of IPS 2 History 1965 to 2014 3 Regulation
4 Forms of financial capital 5 Examples
5.1 Community benefit societies 5.2 Co-operatives
6 See also 7 References 8 External links
Categories of IPS
Co-operative and Community Benefit Societies Act 2014
Industrial and Provident Societies
Forms of financial capital Unlike a company limited by guarantee, an IPS generally has a share capital. However, in a not-for-profit IPS the share capital may be limited to a nominal amount. Both types of IPS have a share capital, but it is usually not made up of equity shares like those in a company limited by shares, which appreciate or fall in value with the success of the enterprise that issues them. Rather they are par-value shares, which can only be redeemed (if at all) at face value. The profits and losses of an IPS are thus the common property of the members. The share typically acts as a "membership ticket", and voting is on a "one member one vote" basis. The maximum individual withdrawable shareholding is currently set at £100,000 (although other IPSs may hold more shares than this). The Legislative Reform Order (Industrial & Provident Societies and Credit Unions) Order 2011 removed the limit for non-withdrawable shares. Since 2006, the FSA has been willing, in principle, to permit societies to have non-user investor members providing certain conditions are met and this, in combination with the removal of the £100,000 holding limit for non-withdrawable shares, may open up wider possibilities for co-operatives to raise finance from investors while maintaining user control. It may be withdrawable share capital, an unusual form of finance which is treated as equity but may be withdrawn subject to specified conditions, and is relatively cheap for small co-operatives to raise as it is exempt from certain regulations applicable to conventional share issues regarding the publication of a prospectus. However, an IPS with withdrawable share capital is not allowed to carry on a banking business, presumably because a withdrawable share capital would make it impractical to ensure capital adequacy requirements are continuously met. Examples Community benefit societies
Broadband 4 Rural North F.C. United of Manchester Fordhall Community Land Initiative Greater Manchester Tree Station Manchester United Supporters' Trust RLLMUK
Ethical Consumer Research Association Shared Interest
Community interest company
^ "Industrial and provident societies".
^ "RFS - Registration of Society or Union".
^ "Archived copy". Archived from the original on 10 July 2015.
Retrieved 19 July 2015.
^ Statutory Instrument 2006 No. 265
^ "A briefing on the 2006 Charities Act". NCVO. Archived from the
original on 13 January 2008.
^ "2 Re-naming of Industrial and Provident Societies Acts".
legislation.gov.uk. Retrieved 26 April 2015.
^ Statutory Instrument 2011 No. 2687
^ "The Legislative Reform (Industrial and Provident Societies and
Credit Unions) Order 2011".
^ a b "Co-operatives Bill will 'build a fairer economy'". gov.uk.
Retrieved 26 April 2015.
^ a b "Co-operatives Bill: Cameron's Consolidation Plan for Co-op Law
shares .coop - The Community Shares Marketplace Community Shares directory Industrial & Provident Societies, Financial Services Authority FSA Mutuals Public Register - searchable, Financial Services Authority
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