Co-operative securities
Distributing co-operatives (and non-distributing co-ops with a share capital) can issue three types of security.
This Part looks at general concepts of equity and debt investment and then describes the three main types of securities that can be issued by co-operatives. The concept of membership, withdrawable shares and additional shares are described and explained. The specific characteristics of share capital issued by co-operatives are described in detail with reference to the need to consider capital requirements at different stages of a co-operative’s development. Methods of dealing with liquidity issues arising from withdrawable share capital are also considered.
Distributing co-operatives (and non-distributing co-ops with a share capital) can issue three types of security.