Abstract
The Industrial and Provident Societies Acts (IPSAs) 1893–1978 provide a legislative system for cooperatives other than credit unions in Ireland. The Industrial and Provident Societies Act originates in British legislation, and is an inheritance of British rule in Ireland and therefore pre-dates the establishment of the State. A cooperative may incorporate as an industrial and provident society or alternatively it may register as a company under the Companies Acts 1963–2012. While not specifically a cooperative law, clearly many groups wishing to establish cooperatives have recognized the IPSA regime as preferable to the company regime. This chapter will focus on the Industrial and Provident Societies legislation, which has facilitated the development of cooperatives across a range of sectors.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
The principle legislative acts are available at http://www.djei.ie/commerce/cooplaw/publications.htm.
- 2.
Snaith (1996) argues that IPSA was specifically developed for cooperatives. There has certainly been a long tradition of use of the legislation for the incorporation of cooperatives in Ireland. The development of model rules for cooperative societies under the legislation by cooperative representative bodies also presumably results in the continued use of the legislation.
- 3.
According to the Registry of Friendly Societies Annual report, 2010, there are 1,063 industrial and provident societies in Ireland the majority of which are thought to be cooperatives. This report was the last in which data on societies beyond total numbers of societies was provided. At that time there were 3 million members of cooperatives (largely accounted for by credit unions), €5 billion in sales/income and €15.5 billion in assets (largely accounted for by agricultural cooperatives and their subsidiaries).
- 4.
In July 2013, new legislation to amend the law relating to Industrial and Provident societies was published. Proposed changes include allowing cooperatives to set their own limits on individual shareholding in the cooperative, the easing of certain financial reporting requirements, the easing of fund-raising restrictions for non-agriculture cooperatives, extending the options of examinership to cooperatives, making appeals easier and the application of the Companies Act 1990.
- 5.
Other relevant legislation includes: Industrial and Provident Society Regulations, 1894–1914, Industrial and Provident Societies (Amendment) Act, 1913, Agriculture Co-Operative Societies (Debentures) Act, 1934, Industrial and Provident Societies (Forms) Regulations, 1986, Companies Act, 1990, Industrial and Provident Societies (Fees) Regulations, 1995, Competition Act, 2002, Investment Funds, Companies and Miscellaneous Provisions Act, 2005, European Communities (European Cooperative Society) Regulations 2009—SI n. 433 of 2009 and European Communities (Consumer Credit Agreements) Regulations 2010—SI n. 281 of 2010.
- 6.
A former Registrar of Friendly Societies and retired staff member of the Department of Enterprise, Trade and Employment (2009).
- 7.
The Registrar of Credit Unions, reporting to the Financial Regulator of the Central Bank, is responsible for the registration, regulation and supervision of credit unions in Ireland.
- 8.
The future of the Registry of Friendly Societies is also under review. The post of Registrar of Friendly Societies is currently held by the Registrar of Companies.
- 9.
De Barbieri points out that membership groups that do not have “an arguable business purpose” could be excluded by the definition (De Barbieri 2009).
- 10.
The application is signed by seven members and the secretary and, along with two printed copies of the rules, is sent to the registrar. The names of members need not be included.
- 11.
S.1 of the 1913 Act allows a society consisting solely of two or more registered societies to be registered.
- 12.
However, it does apply to a member which is a company or any other form of body corporate.
- 13.
ICOS argue that the ‘1 % of the total assets of the Society’ component of the limit “may give rise to problems in the future, in that if a society relies on that part of the formula to permit a financial limit per member or company in excess of €150,000 and it transpires that in succeeding years the total asset values on its balance sheet falls, some of its members may find themselves inadvertently, in breach of the statutory financial limits provisions. It may be appropriate to clarify or confirm that a shareholding, which was lawful at any time by reference to a certain level of total assets of a society, would not cease to be lawful by reference to a subsequent reduction in that level” (ICOS 2009).
- 14.
This amendment was introduced to deal with the problem of unregulated deposit-taking activities.
- 15.
The Agricultural Co-operative Societies (Debentures) Act 1934 provides agriculture and fishing cooperatives with the facility for registering charges that other cooperatives do not have.
- 16.
The Arbitration Act 2010 repealed all previous arbitration legislation.
- 17.
Under S. 34, 1978 Act.
- 18.
There is a concern that a cooperative could use cancelation by the Registrar as a means of easy termination instead of conducting an orderly wind-up.
- 19.
Of a majority not less than three quarters of the members or by proxy where proxies are allowed by the rules of the cooperative.
- 20.
ICOS argues that there “is still a valid case for arguing the exemption of certain classes of mutual society from corporation tax. Where a co-operative activity solely involves the pooling of resources by members for the purchase of goods and services for themselves, no “profit” arises and any excess of returns over outlay is properly a “surplus” belonging to the members” (ICOS 2009).
References
Carey E (2009) Co-operative identity – do you need a law about it? J Coop Stud 42(1/125) pp. 49–50
Carey E (2012) Legislating for co-operatives. Public Aff Irel J (81) pp. 6–8
De Barbieri E (2009) Responses to consultation paper on the Industrial and Provident Societies Acts 1893–2005. Retrieved from http://www.djei.ie//commerce/cooplaw/consultationpaper.htm
Department of Enterprise, Trade and Employment (2009) Co-operative societies: consultation paper on the Industrial and Provident Societies Acts 1893–2005. Department of Enterprise, Trade and Employment, Co-operative Legislation Unit, Dublin
ICOS Ltd (2009) Response to consultation paper on Industrial and Provident Societies Acts 1893–2005. Retrieved from http://www.djei.ie//commerce/cooplaw/consultationpaper.htm
McGrath M, The Centre for Co-operative Studies (2002) LW3701 Mutual & Credit Union Business Law. University College Cork, Dublin
O’Donohoe S (2009) Commentary on sections of the IPS acts 1893 and on various amendments to the 1893 act from 1893–2005. Unpublished correspondence for Co-operative Forum of Ireland Legislative Colloquium, Dublin
Snaith I (1996) Co-operative Principles and UK Co-operative Law Reform. J Coop Stud 29 (1/86) pp. 48–64
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Carroll, B. (2013). Ireland. In: Cracogna, D., Fici, A., Henrÿ, H. (eds) International Handbook of Cooperative Law. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30129-2_21
Download citation
DOI: https://doi.org/10.1007/978-3-642-30129-2_21
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-30128-5
Online ISBN: 978-3-642-30129-2
eBook Packages: Humanities, Social Sciences and LawLaw and Criminology (R0)