1. Scope of the Finance Guide

Three different types of societies

The scope of this guidance covers the ongoing management of share capital in:

• Co-operative Societies
• Community Benefit Societies
• Charitable Community Benefit Societies. 

While there are a lot of similarities in the management of share capital, some of the accounting treatment and reporting requirements are distinct across the three different societies. Care has been taken to ensure any differences where they exist are clearly labelled. 

In terms of framing the differences between the three different types of society, the following broad classifications can help us understand the audience and subsequent narrative around financial reporting for the three different types of societies. 

• Co-operative Societies – focus is on member benefit
• Community Benefit Societies – focus in on a defined community benefit
• Charitable Community Benefit Societies – focus is on wider public benefit

Best practice

This guidance constitutes the legal requirements for societies and best practice as set out by the Co-operative and Community Capital Committee, a member group of Co-operatives UK. Where things are a legal requirement, the guidance will use the word ‘must’ and where it is recommended best practice, it will use ‘should’. 

The Co-operative and Community Capital Committee oversees the Community Shares Standard Mark and the Community Shares Handbook, the kitemark of best practice as applied to public information in relation to a community share offer, this includes the society’s rules, share offer document, business plan and any associated documents. The Community Shares Standard Mark assessment framework is a comprehensive check list of considerations when launching a community share offer. 

This guide should be considered alongside these materials, especially if considering further issuances of share capital.