Co-operative Consortium

A co-operative consortium is an organisation which provides services such as marketing, administration and management for its members. The members may be self-employed individuals, partnerships or limited companies. By working together the members are able to have a bigger presence than if they worked separately. 

Characteristics of a co-operative consortium:

  • it exists to serve its members
  • it does not set out to make a profit for itself, the primary aim is to provide a service
  • it is a limited company with a board of directors
  • directors are elected from the membership or every member is a director
  • directors/members set the co-operative’s policy
  • membership is open
  • surpluses may be re-invested or distributed to members

The benefits of co-operation:

  • better marketing of members’ services
  • shared costs of promotion and advertising
  • better buying power – better terms and discounts – increased strength
  • central office – allocation of work to members
  • central administration – invoicing, book-keeping, etc.
  • better profits for members
  • opportunities for members to cover for each other in times of illness or during holidays.

So how does it all work?

  • the co-operative acts as an agent for its members
  • it takes a commission on business transacted for members
  • it may charge for business services to members
  • it may charge a membership fee
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