Cooperatives Yorkshire and Humber

Consultation response

10 May 2013

Company and business names consultation: Red tape challenge

About Co-operatives Yorkshire and the Humber

Co-operatives Yorkshire and the Humber is the regional representative body for Co-operatives.  It aims to:

Raise the profile of the co-operative sector
Represent the interests of co-operatives
Encourage mutual support, inter-trading and networking
Share best practice, training and development opportunities between co-operatives within the region and beyond
Strengthen co-operative endeavour by lobbying and working with local, regional and national organisations

Question 1: Do you think all regulations relating to names should be repealed?

No, Co-operatives Yorkshire and the Humber does not believe that all regulations relating to company and business names should be repealed.

We believe that Co-operative has a specific meaning requiring protection so that meaning is not diluted or changed much like the EU Protected Food Name scheme.

A cooperative is an autonomous association of persons who voluntarily cooperate for their mutual, social, economic, and cultural benefit. The history of formal businesses operating as co-operatives dates back to 1761, when the Fenwick Weavers' Society was formed in Fenwick, East Ayrshire, Scotland to sell discounted oatmeal to local workers. Its services expanded to include assistance with savings and loans, emigration and education . The Rochdale Society of Equitable Pioneers, founded in 1844, is usually considered the first successful cooperative enterprise, used as a model for modern co-ops, following the 'Rochdale Principles'. A group of 28 weavers and other artisans in Rochdale, England set up the society to open their own store selling food items they could not otherwise afford. Within ten years there were over 1,000 cooperative societies in the United Kingdom.

A cooperative is a legal entity owned and democratically controlled by its members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees.

These values are enshrined and protected by the seven principles democratically agreed by the International Community of Co-operatives through the International Co-operative Alliance, they are:

Voluntary and open membership
Democratic member control
Economic participation by members
Autonomy and independence
Education, training and information
Cooperation among cooperatives
Concern for community

The regulations around the name ensure that the legislative framework echoes the ICA and the use of the term co-operative applies only those who adhere to the 7 principles. We strongly support the retention of the regulations in terms of the name co-operative

Question 2: Do you think regulations relating to names should be retained but reduced and simplified? Please give reasons for your answer.

Echoing Co-operatives UK we believe that the word “co-operative” should be retained on the sensitive word list. We would also like its derivatives, such as “coop” and “co-op”, to be added, as well as the “cooperatives” (without the hyphen), which would encompass European and international forms.

Question 3: Do you think the list of “sensitive” words should be reduced? If so, which words would you recommend for removal and why?

We believe that Co-operative is a unique business form with a proud history, a unique set of values and principles, a distinct meaning in the mind of consumers and has showed exemplary resilience to the economic downturn.

Other business types may not have this unique set of circumstances and not need protection.

In other European Countries restrictions on use of the term co-operative are much stronger and we would seek a strengthening of the protection of use of the word not a weakening.

This could be done more efficiently through work between the FCA, Companies House and our trade body Co-operatives UK increasing the knowledge of the FCA and Companies House utilising the expertise of Co-operatives UK to streamline the process.