This module examines the financial management of co-operative and mutual enterprises and the differences between them and investor owned businesses. It addresses the corporate reporting requirements, capital structures, of distributing and non-distributing forms and the use of Co-operative Capital Units (CCU). The need to balance patronage and investor interests in the design of corporate financial structures will be examined along with specific financial reporting requirements for co-operative and mutual businesses in Australia. Students will be tasked to undertake a review of their own
organisation’s financial structure.
Managers who complete this module should be able to:
- Understand and demonstrate knowledge of the theory and practice of financing member owned businesses including the use of CCU's.
- Examine the nature of ownership rights over share capital and the problems of vaguely defined shareholder rights in the structure and governance of cooperatives.
- Demonstrate an understanding of the interplay between control rights, governance and ownership within member owned businesses and how this impacts on the financial structure and strategy of the enterprise.
- Examine their own organisation’s approach to equity structures, ownership rights and financing, and then critically assess its strengths and weaknesses with a view to identifying areas for improvement.
Lecture Notes and Readings: