Co-op Membership

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BENEFITS

Being a Co-op member means that you own a share of a business in your community. By investing in this local business, you (and others like you) have made an investment in the livelihood of your community. Through co-op membership, you can:

•  enjoy the convenience and benefits offered by your Co-op. Depend on it for top-quality products at competitive prices, and for friendly, efficient service.

•  Purchase a variety of products and services from a business which, because you are an owner, is sensitive to your needs and wants as a consumer.

•  Guide the affairs of the Co-op by participating in membership meetings and electing representatives to the Board of Directors.

•  Share in any net savings that may be earned by the Co-op. This gives a direct economic benefit to our community, as the money is kept in the hands of the community members.

•  Support a responsible organization dedicated to the well-being of your community

CO-OP . . . A GOOD INVESTMENT

Here's how it works

To illustrate how your investment grows, lets take a look at one members transactions with the Wynyard Co-op for one year.

John Doe purchased ten $1.00 shares to become a member of his Co-op. This $10.00 was placed in a special account bearing John Doe's name and member number.

Each time John makes a purchase at his Co-op, he will be asked to give his membership number. All of his purchases from any of the Co-op's departments will be recorded on a patronage record for that membership number. At the end of the year, it might be totaled up like this:

John made good use of his Co-op, buying quality goods at competitive prices.

At the end of the year, the financial statement will show how the Co-op has done financially. If earnings from sales are greater than the operating expenses for the year, the association has been successful in its efforts to produce savings. Members share in these savings in proportion to their purchases at the Co-op.

Let's take a closer look at John's patronage record to see how his share of the Co-op's savings for one year amounted to $146.30.

The purchases John Doe made from the Agro department totaled $890.00. His share generated in that department, at 2%, would be $17.80. In the same manner, his share of the savings from other departments is calculated and a total of $146.30 is allocated to him as a patronage refund in the form of additional shares.

John's share account now looks like this:

John's initial investment of $10.00 has grown as a result of his patronage of his Co-op.

In evaluating the financial status of their association, the Board of Directors who have been democratically elected by John and his fellow members share capital requirements. If the Board feels that the association does not need to retain the full amount, it may decide to pay out a portion of share capital to the members in cash.

For example, let's assume that the Board of Directors of John's Co-op has decided to return 10% of the share capital to the members. John Doe can then expect to receive a cheque or cash for 10% of his share, or equity (15.63). In essence, the Co-op is repurchasing those shares from John Doe. The balance in John Doe's share account is now $140.37 calculated as follows:

It's still John's money

If John should move away and be unable to make further use of his Co-op; when he reaches the retirement age as set by the bylaws of his co-op; or if he should die, his shares or equity in the association will be repaid when funds are available.

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