Relaxation of business laws in prospect for co-operatives
Junior Minister Barry Andrews has confirmed that representations were received from the Irish Dairy Board and the Irish Co-operative Organisation Society in July, requesting greater freedom to determine their financial year end.
He said a general scheme of a Bill has been prepared in the Department of Enterprise, Trade and Innovation to provide for improvements for co-ops.
It will ease certain financial reporting requirements, extend the company law mechanism of examinership to societies, abolish the statutory limit on individual shareholdings in societies, abolish triennial return of shares and loans, and make it easier for cancelled societies to be restored to the register.
“The Minister hopes to be in a position to obtain the necessary approval of the Government for the general scheme of the Bill shortly,” said Mr Andrews.
“While every effort will be made by the Minister and his officials to expedite the legislation, it is difficult to give a definite indication of when that will happen.” He was responding in the Senate to Fine Gael Senator Paddy Burke.
He said legislative changes could substantially help the Irish Dairy Board, the main purchaser of Irish dairy products.
He said it is important that the Board’s financial year match the season and the profile of the business. But the law set down for co-ops requires year end to fall between September 1 and January 31.
A more suitable financial year would allow it to have a smaller inventory, it would make stocktaking easier, and would be of no disadvantage to the Exchequer.
