Musselburgh and Fisherrow Co-operative Society
Encyclopedia
A 2005 attempt by M&F Co-op to demutualize was halted by a Court of Session
interdict
, and resulted in an investigation by the Financial Services Authority
(FSA), the regulator for Industrial and Provident Societies
such as M&F Co-op.
The petition for interdict, which was made by eight members opposing demutualization, including former president George Cunningham, alleged 19 governance irregularities, including conflicts of interest
and an inquorate
board of directors, as three of the six directors had resigned in preceding weeks.
The FSA investigation reported in 2006 that M&F Co-op's democratic governance had not been functioning effectively.
In September 2007, the M&F Co-op incorporated a private limited company, M & F (Scotland) Limited, and transferred its assets and obligations to it, deregistering as an Industrial and Provident Society on 1 October 2007.
Co-operative News reported that M&F Co-op had technically demutualized and was no longer eligible for membership of Co-operatives UK, due to its articles granting voting rights on the proportion of shares owned rather than the fundamental co-operative principle of one member one vote.
and a non-food department store
in Musselburgh
High Street, a commercial property
business, and funeral services
in Musselburgh and Dalkeith
.
In January 2006, M&F Co-op had net assets of £6,745,943.
It built and operated the Quayside restaurant
and leisure
complex overlooking Fisherrow harbour, which opened in 1992.
It sold it in 2007 to leisure entrepreneur Charan Gill, who refurbished it and renamed it The Quay.
The commercial property business also leased shops.
consumer co-operative in Scotland, by number of shops.
Along with the much larger Scotmid
, Lothian Borders & Angus
, and The Co-operative Group
, the movement had five such co-operatives in Scotland.
M&F Co-op and Clydebank Co-operative Society
were the only two that had not merged into a regional or national co-operative by that time.
In 1993, M&F Co-op's president George Cunningham, (who petitioned the Court of Session for the 2005 interdict that delayed demutualization,) was president of the Co-operative Congress, considered the highest honour in the British co-operative movement.
The Co-operative Group owns and operates a pharmacy
in Musselburgh High Street, and an Alldays convenience store
in Clayknowes Road, that are not affiliated with M&F Co-op.
Court of Session
The Court of Session is the supreme civil court of Scotland, and constitutes part of the College of Justice. It sits in Parliament House in Edinburgh and is both a court of first instance and a court of appeal....
interdict
Interdict
The term Interdict may refer to:* Court order enforcing or prohibiting a certain action* Injunction, such as a restraining order...
, and resulted in an investigation by the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
(FSA), the regulator for Industrial and Provident Societies
Industrial and Provident Society
An industrial and provident society is a legal entity for a trading business or voluntary organisation in the United Kingdom, the Republic of Ireland, and New Zealand...
such as M&F Co-op.
The petition for interdict, which was made by eight members opposing demutualization, including former president George Cunningham, alleged 19 governance irregularities, including conflicts of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
and an inquorate
Quorum
A quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that group...
board of directors, as three of the six directors had resigned in preceding weeks.
The FSA investigation reported in 2006 that M&F Co-op's democratic governance had not been functioning effectively.
2007 demutualization
The board called a further members meeting for June 2007 to vote on a demutualization resolution.In September 2007, the M&F Co-op incorporated a private limited company, M & F (Scotland) Limited, and transferred its assets and obligations to it, deregistering as an Industrial and Provident Society on 1 October 2007.
Co-operative News reported that M&F Co-op had technically demutualized and was no longer eligible for membership of Co-operatives UK, due to its articles granting voting rights on the proportion of shares owned rather than the fundamental co-operative principle of one member one vote.
Operations
M&F Co-op operated a food storeGrocer
A grocer is a bulk seller of food. Beginning as early as the 14th century, a grocer was a dealer in comestible dry goods such as spices, pepper, sugar, and cocoa, tea and coffee...
and a non-food department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
in Musselburgh
Musselburgh
Musselburgh is the largest settlement in East Lothian, Scotland, on the coast of the Firth of Forth, six miles east of Edinburgh city centre.-History:...
High Street, a commercial property
Commercial property
The term commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income.-Definition:...
business, and funeral services
Funeral director
A funeral director , also known as a mortician or undertaker, is a professional involved in the business of funeral rites. These tasks often entail the embalming and burial or cremation of the dead, as well as the planning and arrangement of the actual funeral ceremony...
in Musselburgh and Dalkeith
Dalkeith
Dalkeith is a town in Midlothian, Scotland, lying on the River North Esk. It was granted a burgh of barony in 1401 and a burgh of regality in 1540...
.
In January 2006, M&F Co-op had net assets of £6,745,943.
It built and operated the Quayside restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
and leisure
Leisure
Leisure, or free time, is time spent away from business, work, and domestic chores. It is also the periods of time before or after necessary activities such as eating, sleeping and, where it is compulsory, education....
complex overlooking Fisherrow harbour, which opened in 1992.
It sold it in 2007 to leisure entrepreneur Charan Gill, who refurbished it and renamed it The Quay.
The commercial property business also leased shops.
Co-operative movement
In 2007, it was the smallest retailRetail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
consumer co-operative in Scotland, by number of shops.
Along with the much larger Scotmid
Scotmid
The Scottish Midland Co-operative Society Limited, trading as Scotmid Co-operative, is an independent retail consumers' co-operative which originated in the Scottish Midlands, particularly Edinburgh and the Lothians. It was formed in 1981 by a merger of the Dalziel Society of Motherwell with the...
, Lothian Borders & Angus
Lothian, Borders & Angus Co-operative Society
Lothian, Borders & Angus Co-operative Society Limited , founded in 1839 in the Scottish Borders, was the oldest independent consumer co-operative in Scotland until it merged with The Co-operative Group in December 2008....
, and The Co-operative Group
The Co-operative Group
The Co-operative Group Ltd. is a United Kingdom consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organisation of this type in the world, with over 5.5 million members, who all have a say in how the business is...
, the movement had five such co-operatives in Scotland.
M&F Co-op and Clydebank Co-operative Society
Clydebank Co-operative Society
The Clydebank Co-operative Society Limited is the smallest consumers' co-operative in Scotland, based in the town of Clydebank near Glasgow. Along with Scotmid and The Co-operative Group, it is one of three co-operative retailers in Scotland, and the only one not merged into a regional or national...
were the only two that had not merged into a regional or national co-operative by that time.
In 1993, M&F Co-op's president George Cunningham, (who petitioned the Court of Session for the 2005 interdict that delayed demutualization,) was president of the Co-operative Congress, considered the highest honour in the British co-operative movement.
The Co-operative Group owns and operates a pharmacy
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
in Musselburgh High Street, and an Alldays convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
in Clayknowes Road, that are not affiliated with M&F Co-op.