Musselburgh and Fisherrow Co-operative Society
From Wikipedia, the free encyclopedia
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| Type | Consumer co-operative |
|---|---|
| Founded | 1862 [1][2] |
| Headquarters | Musselburgh |
| Key people | Tom Lees, Chief Executive Jean Whitehead, President[3] |
| Area served | Musselburgh and Dalkeith |
| Active members | 1080 (2005) [3] |
| Industry | Retail Leisure Real estate Funerals |
| Website | www.mfco-op.co.uk |
Musselburgh and Fisherrow Co-operative Society Limited (M&F Co-op) is a retail consumer co-operative trading in Musselburgh and Dalkeith, in East Lothian, Scotland. It was founded as a co-operative in the 1860s, and, in the early 21st century, joined the small number of UK co-operative retailers to plan demutualisation. By the early 21st century, M&F Co-op ran a funeral business, a food shop and department store in Musselburgh, and also invested in commercial property, including shops and a leisure complex at Fisherrow harbour.
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[edit] Demutualization
M&F Co-op made headlines as one of a very few retail members of the British co-operative movement to plan demutualisation.[4][5]
| Demutualisation of UK co-operatives
Demutualisation of a co-operative is sometimes known as privatisation, and involves the consumer members[6] surrendering their “one member one vote” democratic control of the business, in exchange for a windfall of cash, or shares of a joint stock company.
The stock company acquires control of the business, and ownership of its assets. The most notable demutualisation plan of a UK retail co-operative was the 1997 failed hostile takeover bid for the Co-operative Wholesale Society by Andrew Regan. A number of the UK's agricultural supply co-operatives that engage in retailing demutualised successfully in the late 20th century. |
A 2005 attempt by M&F Co-op to demutualise was halted by a Court of Session interdict, and resulted in an investigation by the Financial Services Authority (FSA), the regulator for Industrial and Provident Societies such as M&F Co-op.[3][7] The petition for interdict, which was made by eight members opposing demutualisation, alleged 19 governance irregularities, including an inquorate board of directors, as three of the six directors had resigned in preceding weeks, and conflicts of interest.[7] The FSA investigation reported in 2006 that M&F Co-op's democratic governance had not been functioning effectively.[8]
[edit] 2007 demutualisation
The board called a further members meeting for June 2007 to vote on a demutualisation resolution. [5] The following October, Co-operative News reported that M&F Co-op had technically demutualised and was no longer eligible for membership of Co-operatives UK, due to its articles granting voting rights on the proportion of shares owned rather than the fundamental co-operative principle of one member one vote.[9] In September 2007, the M&F Co-op incorporated a private limited company, M & F (Scotland) Limited, as a potential successor.[10] Nevertheless, Co-operatives UK continues to list the society as a co-operative on its UK.coop database as of May 2008.[11]
[edit] Operations
M&F Co-op operated a food store and a non-food department store in Musselburgh High Street, a commercial property business, and funeral services in Musselburgh and Dalkeith.[12][13][14] In January 2006, M&F Co-op had net assets of £6,745,943.[3]
It built and operated the Quayside restaurant and leisure complex overlooking Fisherrow harbour, which opened in 1992.[15] It sold it in 2007 to leisure entrepreneur Charan Gill, who has refurbished it and renamed it The Quay.[16][17] The commercial property business also leased shops.[18]
[edit] Co-operative movement
It is the smallest retail consumer co-operative in Scotland, by number of shops. M&F Co-op and Clydebank Co-operative Society are the only two that did not merge into a regional or national co-operative. Along with the much larger Scotmid, Lothian Borders & Angus, and The Co-operative Group, the movement has five such co-operatives in Scotland.
[edit] References
- ^ Co-op Online Share Book Search. Retrieved on 2008-05-17.
- ^ "Shock as Musselburgh Co-op bids to demutalise", Co-operative News, 2005-10-11. Retrieved on 2008-05-13. "MEMBERS of the 143-year-old Musselburgh & Fisherrow Co-op in East Lothian have voted to demutualise the society and turn it into a limited company."
- ^ a b c d "Musselburgh Co-op in crisis as privatisation bid fails", Co-operative News, 2005-11-01. Retrieved on 2008-05-13. "the issue of Musselburgh & Fisherrow's disappearing membership, apparently down from 15,375 in 1997 to 1,080 now. According to the petition, a circular sent to members in July said that a cash payment of £500 plus five times share value would be payable to those who supported conversion."
- ^ "Going it alone", The Grocer via enotes.com, 2007-06-02. Retrieved on 2008-05-13.
- ^ a b "Co-op breaks with tradition", Edinburgh Evening News via scotsman.com, 2007-05-26. Retrieved on 2008-05-13.
- ^ In the UK, co-operative members are sometimes known as "shareholders". Their share accounts cannot be traded, and only grow in value by a small, fixed amount of compound interest, if any.
- ^ a b "Musselburgh & Fisherrow Co-op Privatisation halted by court", Co-operative News, 2005-10-18. Retrieved on 2008-05-13.
- ^ "FSA inspectors' report criticises M&F Co-op", Co-operative News, 2006-03-03. Retrieved on 2008-05-13. "A DAMAGING catalogue of poor governance, ineffective democratic procedures and member apathy at Musselburgh and Fisherrow Co-op has been revealed"
- ^ "Co-ops UK rap for former M&F Co-op" (2007-10-30). Co-operative News: 7.
- ^ Company number SC331614, M & F (SCOTLAND) LIMITED. Companies House WebCHeck. Retrieved on 2008-05-13.
- ^ Musselburgh & Fisherrow Co-operative Society Limited. UK.coop from Co-operatives UK. Retrieved on 2008-05-13.
- ^ M&F Co-operative Food. Internet Archive Wayback Machine.
- ^ M&F Co-operative Non-food. Internet Archive Wayback Machine.
- ^ Musselburgh & Fisherrow Funeral Services. Internet Archive Wayback Machine.
- ^ "Splash the cash for pool repairs", Edinburgh Evening News via scotsman.com, 2006-03-09. Retrieved on 2008-05-13.
- ^ The Quayside. Internet Archive Wayback Machine.
- ^ "Gill gives new life to Musselburgh complex", Edinburgh Evening News via scotsman.com, 2007-09-06. Retrieved on 2008-05-13.
- ^ M&F Co-operative Property Investment. Internet Archive Wayback Machine.
