Enabling co-operative companies in Australia

What the paper says

This article summarises a recently completed doctoral thesis that addressed the research question: How can Australia’s regulatory environment foster and develop co-operatives? The thesis based its analysis on three qualitative research projects to develop a deeper understanding of the regulatory challenges and opportunities faced by co-operatives. The first project analysed stakeholder submissions to the 2016 Senate Inquiry into Co-operatives, Mutuals and Member-owned Firms. The second adopted a path dependence framework to examine the development trajectory of Australian co-operatives. The third compared organisational purpose, ownership, and stakeholder relationships in co-operatives and companies, examining their interaction with the United Nations Sustainable Development Goals and the Planetary Boundary Framework. The research advocates applying Section 51(xx) of the Australian Constitution to co-operatives, recommending States and Territories transfer their Corporations Power to the Commonwealth, consistent with the precedent set by the Corporations Act 2001. Establishing a single federal regulator would improve professional and public understanding of co-operatives and their contribution to the national economy. Furthermore, a federally regulated co-operative company structure, prioritising social and environmental outcomes alongside economic objectives, could enable more sustainable business practices by embedding purpose and co-operative principles in the company structure.