Co-operative Principles
The original Co-op Principles were developed in Britain in 1844 -
by a group of weavers. This was the first successful co-operative, and
they agreed to work under a set of principles. These were called the
“Rochdale Principles” after the group - the Rochdale Weavers. This set
of principles served co-operatives well for a long time. In 1966, the
International Co-operative Alliance approved a different wording for
six co-operative principles. Today, we operate under seven principles
of co-operation adopted in Manchester [UK] by the International
Co-operative Alliance in 1995.
DEFINITION:
A co-operative is an autonomous association of persons united
voluntarily to meet their common economic, social, and cultural needs
and aspirations through a jointly-owned and democratically controlled
enterprise.
VALUES:
Co-operatives are based on the value of self-help,
self-responsibility, democracy, equality, and solidarity. In the
tradition of their founders, co-operative members believe in the
ethical values of honesty, openness, social responsibility, and caring
for others.
I. VOLUNTARY AND
OPEN MEMBERSHIP
Co-operatives are voluntary organizations open to all persons
able to use their services and willing to accept the responsibilities
of membership, without gender, social, racial, political, or religious
discrimination.
This means:
Informed Choice
the purpose of prospective member orientations is to give enough
information so people can make an informed choice about living in a
housing co-operative.
Sarcee Meadows is a multi-million dollar organization which
strongly believes in a community lifestyle.
Co-op housing is a different kind of housing, not meant to replace
other forms of housing, but to offer an alternative to renting and
buying.
Upon move in members are required to sign a Housing and Share
Subscription Agreement indicating that they will abide by the by-laws,
rules and regulations of the association, to live in the co-operative
spirit, and to participate in the community.
Benefit of Co-operative Principle #1 - Security of Tenure
- can live in unit for as long as member responsibilities are
fulfilled
- different from rental situation where landlord can evict for no
reason
II. DEMOCRATIC
MEMBER CONTROL
Co-operatives are democratic organizations controlled by
their members who actively participate in setting their policies and
making decisions. The men and women serving as elected representatives
are accountable to the membership.
One Member - One Vote
- SMHC has one vote per household
- If there is a dispute, the first name on the share documents has
the vote
Decision Making
- All major decisions (policy changes, budget, etc.) taken to
membership
- Funding available for child care when members attend committee,
board or membership meetings
- Organizational structure is a management team: board,
committees, and staff
- Board of Directors elected from, and by, the Membership
- Committees take recommendations to the Board for approval
Owners/Occupants/Management
- Co-op vs. Condominium (condo owners need not be residents)
- Co-op owner must be resident so owners/occupants/management are
all the same group
Benefit of Co-operative Principle # 2- Participation in
Management
- Each member has a direct say
- Participation means greater control over the housing environment
Responsibility of Co-operative Principle # 2 - Participation
in Management
- Success of the co-op depends on participation of members
- It is important that all members be involved
III. MEMBER
ECONOMIC PARTICIPATION
Members contribute equitably to, and democratically control
the capital of their co-operative. At least part of that capital is
usually the common property of the co-operative. They usually receive
limited compensation, if any, on capital subscription as a condition
of membership.
Shareholder/Owner
- Members own a “piece of the whole pie”, not the individual unit
- There is one mortgage in the name of SMHC
- Members' capital consists of an unlimited number of shares with
a nominal par value of one hundred dollars
- No Equity
- Benefit is in use, not in sale
No interest to individuals
- Non-profit CMHC Operating Agreement states no individual to make
a profit
- Collective profit, through investments, assists annual operating
budget and reserves
No Dividends
- Not like Calgary Co-op Store, no dividends paid at end of year
to individuals
Non-Marketing Housing
- Upon move-out, SMHC purchases share back from member
Budget
- Housing charges increase only as operating and capital costs
increase. Members have the opportunity to participate in planning
and voting on expenditures (budget review meeting).
Surplus
- Benefits the entire co-op. Used for replacements (fridges,
dryers, roofs, siding, water lines, sewer upgrades, etc.)
Benefit of Co-operative Principle #3 - Collective Power
- Collectively, co-op housing members can do much more than
individuals, both financially and in decision making.
IV. AUTONOMY AND
INDEPENDENCE
Co-operatives are
independent, self help organizations controlled by their members.
If they enter into agreements with other organizations, including
governments, or raise capital from external sources, they do so on
terms that ensure democratic control by their members and maintain
their co-operative autonomy.
·
we set our own operating budget
·
set our own housing charges
·
not under Landlord Tenant - relationship that of Co-op
and member
·
Board management on behalf of the members
Benefit of Co-operative Principle #4 - Member Control
Responsibility of Co-operative Principle #4 - to fulfill the
responsibilities of membership to preserve our independence.
Participation.
V.
EDUCATION, TRAINING AND INFORMATION
