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Urban Regeneration Companies: A Consultation Paper
Annex B - Industrial and Provident Societies and Development Trusts
Industrial and Provident Societies
An Industrial and Provident Society is an organisation conducting an industry, business or trade either as a bona-fide co-operative or for the benefit of the community.
- Bona-fide co-operative societies are run for the mutual benefit of their members, with any surplus usually being ploughed back into the organisation to provide better services and facilities. Each member has at least one share in the society and control is vested in the members equally.
- Benefit of the community societies provide services for people other than their members. They must also have special reasons for wishing to register as an industrial and provident society, rather than as a company.
These societies are primarily governed by the legislation contained in the Industrial and Provident Societies Act 1965, the Industrial & Provident Societies Act 1967 and the Friendly and Industrial and Provident Societies Act 1968.
Types of organisations registering as industrial and provident societies
Industrial and Provident Societies are engaged in a wide variety of businesses. These include workers' co-operatives, retail co-operatives, housing associations, social clubs (such as the Royal British Legion, working men's clubs, Conservative clubs) and sporting organisations (such as rugby, cricket and golf clubs, allotment societies and other voluntary community-based organisations).
Potential benefits of registration as an industrial and provident society?
- a registered society does not need trustees to represent its interests;
- the members have limited liability;
- the society has a registered rulebook setting out how it must be run; and
- organisations who may be providing grants, loans or subsidies sometimes prefer those organisations applying for such to be registered with a statutory body such as the Registry.
Development Trusts
The term Development Trust is used to describe any independent, not-for-profit organisation which has as its principal objectives 'social, physical, community or economic development' - particularly in disadvantaged neighbourhoods and communities.
They are usually multi-purpose rather than single purpose organisations. They undertake a range of activities form direct project management through to more strategic roles.
Key characteristics of a Development Trust are:
- their membership is open to the community in which it operates;
- they are legally constituted or incorporated; and
- and they are democratically controlled by their members.
A 'Development Trust' may be an Association, a non-profit Distributing Limited Company, a Friendly Society, or and Industrial and Provident Society. In some cases the 'trust' may also be a legally constituted trust. Some trusts are also registered as charitable organisations.
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