Social cooperative

What is a social cooperative?

A Cooperative is a form of company governed by the Civil Code (http://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:regio.decreto:1942-03-16;262!vig=) (Book VI, Title V) as a variable capital company with mutualistic purposes. A Cooperative Society can be recognized as predominantly mutual or have a different form; Social Cooperatives are always predominantly mutual. Part of the rules relating to commercial companies apply to the Cooperative, and in some cases, it can be established as a limited liability company (srl) or as a joint-stock company (spa), in the latter case if the shares are structured as shares.

Unlike other corporate forms, Cooperatives are based on the principle of democracy, therefore each member has the same rights, including the vote in the assembly, regardless of the share of capital. The entry or exit of members does not determine changes to the articles of association.

The Cooperative itself is liable for the Cooperative’s obligations rather than the members or directors.

What are the characteristics of a social cooperative?

The Social Cooperative is a particular form of Cooperative introduced and regulated by [law 381/1991](http://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:1991-11-08;381!vig=) and by [decree 112/2017](http://www.normattiva.it/uri-res/N2Ls?urn=nir:stato:decreto.legislativo:2017-07-03;112!vig=) as a [Social Enterprise](https://italianonprofit.it/risorse/definizioni/imprese-sociali/). It qualifies as a particular form of Cooperative Society aimed at pursuing the general interest of the community in the human promotion and social integration of citizens.

Social Cooperatives are divided into two types:

1. aimed at the creation of social, socio-health, and educational services, education and professional training, extracurricular training, job placement (type A).
2. carrying out different activities – agricultural, industrial, commercial, or service – aimed at the employment of disadvantaged people (type B).

[Type A and B mixed cooperatives can also exist.

Social Cooperatives, unlike other types of Cooperatives, can also have voluntary members (maximum half of the worker members), and if of type B, they must have at least 30% of disadvantaged workers who, if, by virtue of their personal conditions, are able to, they must be associated.

The Social Cooperative is by right a Social Enterprise.