CO-OPERATIVES, THE STATE, AND MORAL HAZARD

This article explores the nature of the relationship between co-operatives and the State, written primarily from a UK perspective. In the United Kingdom (specifically Great Britain) ―co-operative‖ is not defined in law. Therefore, co- operatives are free to use any legal form or none at all. The decision to adopt some kind of legal form – and in particular to become a body corporate – leads to perhaps one of the first interactions a co-operative has with the State. In Great Britain, most co-operatives choose to register under the Co-operative and Community Benefit Societies Act 2014 (2014 Act). The 2014 Act specifically enables a society to register as a ―co-operative society.