Government asks Law Commission to review law on cooperative and friendly societies
The review would assess whether the law fits the needs of the organisations
The Law Commission announced on 16 June that it has been asked by HM Treasury to review the legislation on cooperatives and community benefit societies, and friendly societies. More specifically, the Commission has been requested to undertake two projects to assess whether the current law that governs these types of organisations is fit for purpose and proportionate.
One of the projects would be focused on the Co-operative and Community Benefit Societies Act 2014, and the second project would be dedicated to the Friendly Societies Act 1992. The Law Commission would be tasked with evaluating whether the legislation supports a modern business environment where cooperatives and friendly societies are able to thrive.
A cooperative organisation, which can cover a range of activities such as housing associations, supermarkets and pubs, is owned by its members, who have a say in how the organisation is run. A friendly society is an organisation that provides insurance or other benefits to its members, which is funded by its members.
The Law Commission will now consider the government’s request and release information on the scope and timeline of the review in the instance that the project is formally agreed.