Other appealing features of the CIC are the legitimacy and profile that they bring to community
enterprise, and the additional choice that they provide for community entrepreneurs.
B. Co-operatives and CICs
A question that has arisen in my discussions of the potential for Canada to adopt a structure similar to the
CIC is whether it is necessary, given our existing federal and provincial co-operative legislation and
regulatory regimes.
Co-ops are vitally important to Canada’s economy and communities. There are over 9,000 co-operatives
serving over 17 million members in virtually every field of endeavour.
7 The Canadian Co-operative
Association summarizes the key differences between business corporations and co-operatives this way:
“A Different Purpose: The primary purpose of co-operatives and credit unions is to meet the
common needs of their members, whereas the primary purpose of most investor-owned
businesses is to maximize profit for shareholders.
A Different Control Structure: Co-operatives and credit unions use the one-member / one-vote
system, not the one-vote-per-share system used by most businesses. This helps the co-operative
or credit union serve the common need rather than the individual need, and is a way to ensure that
people, not capital, control the organization.
Different Allocation of Profit: Co-operatives and credit unions share profits among their
member-owners on the basis of how much they use the co-op, not on how many shares they hold.
Co-operatives and credit unions also tend to invest their profits in improving service to members
and promoting the well-being of their communities.”
8
Co-operatives are guided by these key principles:
• Voluntary and open membership;
• Democratic member control;
• Member economic participation;
• Autonomy and independence;
• Education, training, and information;
• Co-operation among co-operatives; and
• Concern for community.
Co-operatives can be viewed as well-established hybrids that successfully combine commercial and
community mechanisms and interests. Co-operatives can be created for a wide range of purposes and
activities – from purely commercial to charitable. While primarily driven to achieve member benefit, cooperatives
can make community benefit their first priority, or they can combine member and community
benefit as they choose. Co-operatives can also raise capital for community projects by issuing shares to
members or outside investors. They can also maintain that on dissolution or wind up, remaining assets
must be transferred to a charity or other community organization