Co-operatives, Mutuals and Friendly Societies Bill 2022
We are delighted that Sir Mark Hendrick’s Co-operatives, Mutuals and Friendly Societies Bill received its Third Reading in the House of Lords on Friday 16th June 2023. We would like to thank Sir Mark Hendrick MP for steering the Bill through the House of Commons and Lord Roy Kennedy of Southwark for his leadership in the House of Lords.
The Bill will now proceed to Royal Assent. The Act will preserve mutual ownership by ensuring that assets may only be used for the purpose they were intended. This will ensure they cannot be distributed to members or third parties and therefore disincentivises demutualisation.
We also welcome the Government’s commitment to review the Co-operative and Community Benefit Societies Act 2014 and Friendly Societies Act 1992. Conducted by the Law Commission, the review will begin in the autumn of 2023.
Mutuo Managing Partner Peter Hunt said: “It’s been a great pleasure to work with Sir Mark and Lord Kennedy on this landmark Bill to safeguard mutual assets for the purpose they were intended. This legislation is significant, progressive and historic. It offers co-operatives and mutuals the opportunity to put the threat of demutualisation behind them for good. We look forward to further reforms to safeguard the future of the co-operative sector.”