This document provides an introduction to cooperatives, including what they are, their values and principles, advantages and disadvantages compared to investor-owned businesses, types of cooperatives, and registration requirements for starting a cooperative in The Bahamas. Specifically, it defines cooperatives as autonomous associations united voluntarily to meet member needs through jointly-owned and democratically controlled enterprises. It outlines seven cooperative principles including democratic member control, member economic participation, and concern for community. The document also describes various types of cooperatives and lists the key components required in cooperative bylaws and business plans.

1. THE COOPERATIVE
WAY OF BUSINESS
A N I N T R O D U C T I O N T O C O O P E R A T I V E S

2. WHAT IS A CO-OP?
A Cooperative is an autonomous
association of people united
voluntarily to meet their economic,
social, and cultural needs and
aspirations through a jointly-owned,
democratically-controlled enterprise.
In The Bahamas, Cooperatives are
regulated by Cooperative legislation.
Enforced by the Department of
Cooperative Development.

3. STATEMENT OF
IDENTITY OF
COOPERATIVE
SOCIETIES
The Statement on Cooperative
Identity was adopted in 1995 by the
General Assembly of the International
Cooperative Alliance (ICA) held in
Manchester to mark its contennial. It
comprises of the definition, values,
and 7 principles of Cooperatives.

4. COOPERATIVE VALUES
Cooperatives are based on the
values of self-help, self
responsibility, democracy,
equality, equity, and solidarity.
In the tradition of their
founders, Cooperative
members believe in the ethical
values of honesty, openness,
social responsibility, and caring
for others.
"People helping people
to help themselves"

5. PRINCIPLE 7
VOLUNTARY & OPEN MEMBERSHIP
DEMOCRATIC MEMBER CONTROL
MEMBER ECONOMIC PARTICIPATION
AUTONOMOUS & INDEPENDENT
EDUCATION, TRAINING, & INFORMATION
COOPERATION AMONG CO-OPS
CONCERN FOR COMMUNITY
PRINCIPLE 6
PRINCIPLE 5
PRINCIPLE 4
PRINCIPLE 3
PRINCIPLE 2
PRINCIPLE 1
COOPERATIVE PRINCIPLES

6. ADVANTAGES
INCREASED
BARGAINING
POWER
LIMITED
LIABILITY
EXEMPTION
FROM SOME
TAXES
LARGER
SUPPORT TEAM
MEMBER
OWNERSHIP

7. DISADVANTAGES
NO VOTING BY
PROXY
SHARES DO NOT
INCREASE IN
PAR VALUE
SUCCESS IS
DEPENDENT ON
MEMBER
GROWTH

8. A share may not increase in value. It
can only be redeemed by the
cooperative at its par value.
CO-OPS VS INVESTOR
OWNED BUSINESS
A member is entitled to only one vote
at a general meeting, regardless of
the number of shares he or she holds.
Surpluses are paid into the reserve or
to members in the form of patronage
returns proportional to the business
done by each member of the
cooperative.
A common share may increase in
value. A shareholder may sell his or
her shares to another person at an
agreed upon price.
The number of votes a shareholder is
entitled to at a general meeting is
equivalent to the number of shares held
in the company.
Profits are distributed in the form of
dividends according to the provisions
for each class of shares or reinvested in
the company. The value of shares
reflects the net value of the corporation.
Cooperatives Investor-Owned

9. TYPES OF
COOPERATIVES

10. 01
02
03
FINANCIAL
These co-operatives offer financial, loan
or investment services, and insurance
services to their members.
CONSUMER
These co-operatives provide their
members with goods for their personal
use.
SERVICE
These co-operatives provide services to
their members and are owned by the
users of the services.

11. 04
05
06
PRODUCER
These co-operatives are owned by
members that purchase from them their
inputs, or who deliver to them the
products and services they market.
INDUSTRIAL (WORKERS)
These co-operatives provide their
members with work by operating an
enterprise.
MULTI-STAKEHOLDER
These co-operatives are made of
different categories of members who
share a common interest
in the organization

12. REGISTRATION
REQUIREMENTS
Membership Requirements
Minimum: 10people
Minimum Age: 16
Purchased Qualifying Shares
Paid Membership Fee
Registration Package
Application Form to Director of Societies
Proposed Business Plan
Proposed Bylaws
Notice of Registered Office
Application Fee
1.
2.

13. BUSINESS
PLAN CONTENT
Data from the market study
Summary of the curriculum vitae of the
main people in charge and a list of
members
Letters of support, intention to buy or
sell, etc.
Any other relevant information that may
shed more light on the nature of your
operations, equipment needed,
manufacturing methods and
procedures, etc.

14. MAIN FEATURES
OF BYLAWS
A co-operative’s bylaws define the rights and obligations of each
member of the Cooperative.
the qualifications and procedures
for acceptance of members
requirements for becoming a
member
the procedure for calling the annual
general meeting, special general
meeting and meetings of the board
of directors
the powers and responsibilities of
the board of directors, and other
committees and boards
method of voting
the distribution of any surplus
earnings
the methods of terminating
membership
the delegates representation and
procedures
the procedure for handling of
disputes
any other matter that the members
consider necessary or desirable

15. FREQUENTLY ASKED
QUESTIONS
1. MAY NON-MEMBERS INVEST IN A CO-OPERATIVE?
Normally, only members may invest in a co-operative. Given the size of investment
necessary to start up or develop an enterprise in certain economic sectors, however,
the new legislation contemplates the issue of preferred shares to non-members.
2. DO ALL MEMBERS EARN THE SAME SALARY IN A WORKERS’ CO-OPERATIVE?
3. DO CO-OPERATIVES PERFORM BETTER THAN INVESTOR-OWNED BUSINESSES?
This is not obligatory. It may sometimes be the case in very small co-operatives,
such as co-operatives composed only of professionals. Generally, however, a co-
operative must adapt its salary policies (particularly its salary scale) to the practices
in effect in the sector in which it is operating.
It may perform a great deal better, particularly in the case of worker co-operatives.
Some studies comparing the performance of these co-operatives with private
enterprises operating in the same economic sector have demonstrated their
superiority in low absenteeism, and better quality of products and services.

16. AGREE
Ancient Proverb
WHERE TWO OR MORE
NOTHING SHALL BE IMPOSSIBLE

17. MARLIN MAKER
CO-OP STARTUP SERVICES
Initial Group Consultation Service
Research and Development
Briefing Consultancy Meeting
Prepare Financial Assumptions
Co-op Project Proposal
Customized Guidebook
Recruitment of Members
Brand Establishment
1.
2.
3.
4.
5.
6.
7.
8.
Social Media Management
Plan the Operation
Plan and Organise Staff Financing
Prepare Business Plan
Recruit and Train the Staff
Prepare Regulator’s Registration Package
Organize Training for Steering Committee
Plan and Organize Annual General Meeting
9.
10.
11.
12.
13.
14.
15.
16.

18. THANK YOU
for your time!
242-803-9929
contact@marlinmaker.com
www.marlinmaker.com