Law Commission: Shaping the future of co-operative law

Law Commission consultation: A sector-wide response

The Law Commission’s landmark consultation on co-operative and community benefit society law has concluded. At 219 pages, this was a substantial and wide-ranging document that required significant engagement and expertise to navigate.

We led a collaborative, sector-wide response to this pivotal consultation, working closely with our members, sector experts, and the Law Commission itself. Together, we submitted a detailed response before the consultation period closed on 10 December 2024. You can read our full response here >>

Thank you to our members and supporters

We thank everyone who contributed their time, insights, and expertise. Member input has been invaluable in shaping a response that truly reflects the collective voice of the co-operative movement. It demonstrates the power of collaboration and shared commitment to creating a legal framework that supports a thriving, modern co-operative economy.

Critical issues

The consultation addressed critical issues that could shape the future of co-operative and community benefit society law. They included:

• Capital Raising and Common Capital: Exploring ways to modernise the law to enable sustainable growth while safeguarding co-operative principles
• Legal Definitions: Refining the legal definition of a co-operative to ensure clarity and alignment with international standards
• Reducing Burdens: Addressing smaller, yet impactful, issues such as audit requirements and registrar processes to reduce unnecessary costs

Many of the Law Commission’s proposals aligned with the aspirations of the sector and promise positive change. Some required further refinement or clarification to ensure they delivered the intended benefits. A few proposals raised concerns, appearing misaligned with the needs and priorities identified by our members and experts.

Looking Ahead

We remain committed to engaging with the Law Commission and policymakers to ensure the final recommendations reflect the collective needs of the co-operative sector. Thank you again to everyone who played a part in this vital work. Together, we’re building a stronger legal foundation for co-operatives to thrive in the future.

Non-legislative issues

While the Law Commission can only make direct recommendations for legislative change, this review can also highlight issues for societies caused by policies and processes in public and private organisations. This includes HMRC, Government Digital Service, high street banks and credit reference agencies.  

Societies should tell us about any problems encountered here: System reboot: Let co-operatives in.