Saskatchewan has a strong co-operative sector made up of approximately 1,200 co-operatives and credit unions operating in virtually every economic and social sector and every community. These co operatives range in size from small community service organizations to one of Saskatchewan's largest businesses, Federated Co-operatives Limited, with sales of over four billion dollars. Co-operatives are unique business structures established by members to meet their needs, operating on a democratic basis and where earnings are distributed based on use of services rather than the amount of investment or equity held.

Corporations Branch, Saskatchewan Justice is responsible for registering and regulating co operatives in Saskatchewan. With each Certificate of Incorporation, Saskatchewan Justice provides the new co operative with a fact sheet entitled General Information which sets out the basic legal requirements.

A successful co-operative must be able to develop both an effective democratic governance structure, a viable business plan and access to capital needed to acquire assets and initiate operations. It will also need knowledgeable directors, management and staff with the capacity to operate the co operative.

Co-operatives not only operate in virtually every economic and social sector but they can be structured as for-profit or not-for-profit co-operatives. The New Generations Co-operative Act provides a third model.

The key difference between the first two is that with a for-profit co-operative, any surplus or profit (subject to certain limits) may be distributed to members either in cash or in the form of additional shares. Unlike conventional corporations, dividends are paid based on the member's use of the services of the co-operative and not the number of shares held. The most common example of this type of co-operative is the retail or consumer co-operative.

Not-for-profit co-operatives do not permit the payment of its surplus to its members and require it to be kept in reserve. These co-operatives are very diverse ranging from small community centres to cable television co-operatives.

New Generation Co-operatives, or NGC's, provide a more flexible structure for raising capital from both members and non-members while retaining the basic principles of a co-operative.

Care must be taken in selecting the appropriate structure to meet the long term needs of the co operative and its members.

Wayne Thrasher, Manager
Co-operative Development
Regional Programs and Services
Ministry of Enterprise and Innovation
200-3085 Albert Street
REGINA SK S4S 0B1
Phone: (306) 787-0190
Fax: (306) 798-0796
Wayne.Thrasher@gov.sk.ca