How Does the Co-op Work (FAQs)

What is a share?
The Co-op has currently issued only one type of share, a “membership share”, at the price of $50.00. The purpose of the membership share is to enable all members to start at a common place – having an equitable stake in the Co-op.

What is the fee?
There is No Annual Membership Fee. Organizations subscribe to shares in the Co-op when they join but do not subsidize it on an on-going basis. After that, the Co-op must survive through its business activities. Fees are gained from sales of products and services.

What’s the initial cost?
Under the Co-op’s Rules, all members subscribe to 2 shares upon acceptance into membership. Using the principle of affordability, additional share purchases will be required based on their gross revenue – the higher the revenue, the more share subscriptions required.

How do the share subscriptions work?
When an organization applies and is accepted into membership, it will be issued two initial shares. After admittance, the Co-op board will document the number of additional shares to which the member must subscribe (one share for each full increment of $50,000, after the first $50,000 and excluding any revenues over $10 M). Members must then agree to the required subscription. However, all of the subscribed shares do not have to be paid immediately. The actual payment for shares will be worked out on a case by case basis. This will assist the new member to start acquiring benefits right way and smoothes out the Co-op’s cashflow.

How much does your vote count?
Each organization has one vote on all issues no matter how many shares any member owns. This is true for elections at general meetings and any other voting matter. Your vote is the same as every other member.

What is a “call” on shares?
The Directors, ensuring the Co-op has a cash flow appropriate to its requirements, will “call” on members for periodic payments on their shares. When a call is made, members that have not fully “paid up” their shares will be asked to send in a further payment. For example, the Co-op Directors could ask for a payment on 25% of the subscribed shares not yet fully paid up.

What happens when all the shares are paid up?
Once all the shares are paid up, the Co-op must be self-sufficient, sell more common shares or borrow funds for operations. Or, the Co-op membership could decide to issue another class of shares to attract additional equity. The board’s borrowing power is limited within the Co-op rules.