A Legislative Reform Order (LRO) is a legal procedure that government can use to remove or reduce burdens resulting from legislation. This LRO applies specifically to Industrial and Provident Societies and credit unions, making changes in three key areas:
Age Limits. The LRO allows people 16 and under to become members of co-operatives and those 16 and over to stand for committees or boards;
Share Capital. The £20,000 limit on share capital will now apply only to withdrawable shares; there will no longer be a limit on non-withdrawable, i.e. transferable, shares;
Interim Accounts. The LRO allows societies to publish un-audited interim accounts provided they are clearly identified and published alongside the most recent audited accounts. This is a change that will save co-operative businesses thousands of pounds in expense.