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CO-OPERATIVES AND MUTUALS
What Is a Co-operative ?
A co-operative is a legally incorporated company that is owned by members. Below are some examples of the types of co-operatives that exist.
Consumer Co-operative
Producer Co-operative
Provides common goods and services. Sectors : agri-food, self-employed workers, consultant services, etc.
Worker Co-operative
Workers are owners and employees. Sectors : forestry, leisure, retail, tourism, etc.
Multistakeholder Co-operative
Worker-Shareholder Co-operative
Group of worker-shareholders who contribute to the management of the business. Sectors : manufacturing, high technology, etc.
What Is a Mutual ?
The term “mutual” is almost always – though not exclusively – used to describe insurance companies in Canada. In a mutual insurance company, the policyholder represents both the insured party and a participant in the business, which is like a co-operative.
Other types of insurance companies may be owned by external investors who risk their capital and reap profits. Mutuals return any excess revenue by lowering the cost of policies, which keeps the market competitive, or by investing in improving services or supporting their community, depending on what members decide.
