Industrial and Provident Societies: growth through co-operation
Setting out the government’s proposed reforms to promote the ongoing success of the Industrial and Provident Society (IPS) sector.
The consultation proposes six reforms to IPS legislation, which will give the IPS sector the legislative environment it needs to thrive. These include making insolvency procedures available to IPSs, which will increase the chance of rescue for troubled societies and therefore protect members and jobs. Making insolvency procedures available to IPSs will also remove an obstacle to supporter-owned IPS football clubs playing at the top level, because they can now meet Football Association rules that clubs must be able to go into administration.
The consultation follows the government’s commitment in Budget 2013 to consult on introducing insolvency procedures for IPSs and for Credit Unions, and on raising the limit of Withdrawable Share Capital that one member can invest a particular IPS.