Can one person set up a FairShares Company or Co-operative?
UK Restrictions on Single Person Organisations
In UK Company Law, it is possible for one person to act as secretary/director of their own company. The Model Articles for a FairShares Company are designed to allow a single person to establish it if they are self-funding the enterprise. However, rule provisions state that 3 directors are needed if the company is in receipt of public or charitable fundings. This reflects advice from social enterprise advisers that many public/charitable funders require 3 directors before ‘public interest’ or 'community interest' funding will be agreed.
A FairShares Company will automatically develop into a co-operative by following the provisions in the rules for issuing shares to Users and Labour and electing directors, but it is not a bone fide co-operative UK Law. A bone fide co-operative in UK Law requires at least two people, and has to be set up in accordance with Co-operative, Community Benefit and Credit Union Acts. A FairShares Co-operative is a "bone fide" co-operative under UK Law.
Outside the UK, there may be a requirement from as few as 2 directors when forming a company and up to 20 to form a co-operative. From a FairShares perspective, the number of directors is taken to be less important that the commitment of existing directors / managers to take on new workers as Labour Shareholders and/or customers and users as User Shareholders.
[Country] Restrictions on Single Person Organisations
(Please copy this section and add information about restrictions in company and co-operative law in your country)
Return me to the FairShares Articles of Association page.
Return me to the FairShares Company page.
