To get vertical ocean farming off the ground and operational, is forming a community co-op the best option? (See article
channelseafarms.com.au/a-new-opportunity-for-bruny-island
)
I am not talking about a co-op of producers, like say fishermen or dairy producers banding together. Rather it would be a community co-op where shares would be bought by individuals to raise a target sum of money. A share might be $1000 to pick a figure. The target maybe $50,000.
This is just a model and I don't know what's workable.
Does any body have any experience with co-ops?
What alternatives are there to establish operations? Individual operators? Partnerships?
Thanks Austin, I've had a look at the information provided in the link and it certainly appears that a community co-op model would be ideal for Bruny Island. There's a few types of co-op structure but we could chose the one most appropriate for us.
Cheers,
JR
Thank you Austin for putting together a draft prospectus. I am publishing it here to seek further suggestions and comments.
It would be good to get it refined to the point where it could be made available to the public.
Do we need a full blown, feasibilty study and business plan too? That's probably a rhetorical question.
In the meantime, please have a look at this DRAFT / SAMPLE prospectus and add your comments below.
Certainly things are evolving. I've had advice from a retired lawyer with strong connections to Bruny that the best structure would be as a registered charity. Under the charity would be a company limited by guarantee. This would be a subsidiary that does all the 'work' and sits under the charity.
Being a charity makes it easier to garner tax deductable donations from corporations and the like. It probably makes it easier to apply and receive various grants too.
Overview
In Australia, a company limited by guarantee (CLG) is a common structure for not-for-profit and charitable organiations. It's registered with the Australian Securities and Investments Commission (ASIC). A key feature is that members' liability is limited to a pre-determined amount they've agreed to contribute if the company is wound up. The company cannot pay dividends, and any surplus funds upon winding up are typically directed to other charities with similar purpose.
Key Characteristics of CLGs in Australia
Limited Liability: Members' liability is limited to the amount they've guaranteed, typically a small amount, in the event of winding up.
Not-for-profit: CLGs are generally not-for-profit and reinvest any surplus towards their stated purposes.
No Dividends: Members cannot receive dividends from the company's profits.
Registered with ASIC: CLGs are registered with ASIC and must comply with the Corporations Act 2001
Public Company Status: In Australia, a CLG must be a public company.
Constitution: CLGs usually have a constitution outlining how the company should be run.
Charitable Purposes: Many CLGs are registered as charities with the Australian Charities and Not-for-profits Commission (ACNC).
Directors and Secretary: CLGs require at least 3 directors and one secretary, who must be ordinarily resident in Australia.
