THE NEW ITALIAN CO-OPERATIVE LAW AND CO-OPERATIVE PRINCIPLES

Antonio Fici

Paper presented at the symposium “Co-operatives, legislation and public policy”

(Sobey School of Business, Saint Mary’s University, Halifax, Canada, 19-21 June 2009)

Tab. 1. Co-operative enterprises in the ISTAT census of 2001

Number % on the total* Jobs % on the total*

53,393 1.2 935,239 5.8 2001

* excluding public institutions Source: Zamagni-Zamagni, La cooperazione, Bologna, 2008, 85

Tab. 2. Co-operative enterprises in 2005

Number % on the total

70,397 1.382005

Source: Unioncamere, Secondo rapporto sulle imprese cooperative, 2006

Tab. 3. The Italian co-operative movement in 2005

Number Turnover (billion €)

Members Jobs

Legacoop 15,200 50 7,500,000 414,000

Confcooperative 19,200 57 2,878,000 466,000

UNCI 7,825 3 558,000 129,000

AGCI 5,768 6 439,000 70,000

Unicoop 1,910 0.3 15,000 20,000

Non-members 21,561 3 100,000 150,000

TOTAL 71,464 119 11,490,000 (1 in 5 IT citizens)

1,249,000

Source: Zamagni-Zamagni, cit., 89

Tab. 4. The co-operative register (at 15 January 2006)

Number %

“Mainly mutual” co-ops(16.5 % social co-ops)

58,236 93.5

“Other” co-ops(31.2 % worker co-ops; 16.1

% housing co-ops)

3,821 6.2

Not subjected co-ops 196 0.3

TOTAL 62,253 100

Source: Unioncamere, Secondo rapporto sulle imprese cooperative, cit.

Number Members Jobs

250,000 163,000,000 (1 in 3 EU Citizens)

5,400,000

Source: Co-operatives Europe, October, 2008, in www.coopseurope.coop

Tab. 5. Co-operatives in Europe

2008

The context. Italian Constitution on co-operatives

«Private economic initiative is free … it cannot be

carried out against social utility or in a way that hinders

security, freedom and human dignity» (art. 41)

but

«The Republic recognises the social function of co-

operation with mutual character and without private

speculation purposes. The law promotes and favours its

growth with the most appropriate means, and ensures,

with appropriate controls, its character and purposes»

(art. 45)

The context. European Commission on co-ops

«Cooperatives are an excellent example of a company type which can simultaneously address entrepreneurial

and social objectives in a mutually reinforcing way» (communication COM(2004) 18, of 23 February 2004, on

the promotion of cooperative societies in Europe)

«[they are] … vehicles for the implementation of many Community objectives in fields like employment policy,

social integration, regional and local development, agriculture, etc.» (ibidem)

Tab. 6. “Mainly mutual” and “other” co-operatives

Mainly mutual co-ops Other co-ops

Minimum operations with members

yes no

Limited remuneration on the capital (and on financial instruments) subscribed by members

yes no

Distribution of reserves to user-members

no yes

Devolution of assets to mutual funds in case of dissolution

yes no

Conversion into a for-profit company

no yes(but assets devolution to

mutual funds)

Tax advantages yes no

Tab. 7. Voting rights. Exceptions to the “one member, one vote” rule

Exception Beneficiary Criterion Limit

Art. 2538, para. 3, c.c.

Legal entity - capital held- number of members

5 votes

Art. 2538, para. 4, c.c.

Members of a co-operative among entrepreneurs

In proportion to mutual exchanges

- each: 10% of the total votes- together: 1/3 of the total votes

Art. 2543, para. 2, c.c.

All members of all co-operatives

- capital held- mutual exchanges

appointment of the supervisory body

Art. 2526, para. 2, c.c.

Investor members Law is silent on this point

each or together: 1/3 of the total votes

Fig. 1. Systems of administration and control

Three-tier/default system

ASSEMBLY

BODY OF SUPERVISORS

BODY OF DIRECTORS

ACCOUNTS AUDITOR

One-tier system

ASSEMBLY

BODY OF DIRECTORS

ACCOUNTS AUDITOR

AUDIT COMMITTEE

Two-tier system

ASSEMBLY

ACCOUNTS AUDITOR

SURVEILLANCE BOARD

MANAGEMENT BOARD