Co-operative Capital Units: Attractive Equity Instruments?

TitleCo-operative Capital Units: Attractive Equity Instruments?
Publication TypeBook Chapter
Year of Publication2012
AuthorsLimnios, EM, Watson, J, Mazzarol, T, Soutar, G
Book TitleCo-operatives in the Fourth Sector: The Role of Member Owned Businesses in the Global Economy
ChapterChapter 4
Paginationpp. 56-65
PublisherTilde Publishing and Distribution
ISBN Number978-0-7346-1170-3
KeywordsCo-operative capital units, Co-operatives

In this Chapter we review and classify the ownership and control structures applied by legislators and co-ops internationally. We also explore the nature of a financial instrument that can allow external investment without the dilution of member control and propose an equity structure that is responsive to changes in the balance of patronage and investment interests of members, allowing a co-op to move along the continuum from a “traditional” co-op to an “entrepreneurial” co-op (Nilsson 2001) under a single ownership and control structure.