Module 4: Financing Co-operative and Mutual Businesses

Module Description:

This module examines the financial management of co-operative and mutual enterprises and the differences between them and investor owned businesses. It addresses the corporate reporting requirements, capital structures, of distributing and non-distributing forms and the use of Co-operative Capital Units (CCU). The need to balance patronage and investor interests in the design of corporate financial structures will be examined along with specific financial reporting requirements for co-operative and mutual businesses in Australia. Students will be tasked to undertake a review of their own
organisation’s financial structure.

Learning Objectives:

Managers who complete this module should be able to:
  1. Understand and demonstrate knowledge of the theory and practice of financing member owned businesses including the use of CCU's.
  2. Examine the nature of ownership rights over share capital and the problems of vaguely defined shareholder rights in the structure and governance of cooperatives.
  3. Demonstrate an understanding of the interplay between control rights, governance and ownership within member owned businesses and how this impacts on the financial structure and strategy of the enterprise.
  4. Examine their own organisation’s approach to equity structures, ownership rights and financing, and then critically assess its strengths and weaknesses with a view to identifying areas for improvement.

Lecture Notes and Readings: