The federal government says it has levelled the playing field for the cooperatives and mutuals sector, after passing legislation making it easier for member-owned businesses to compete with listed companies.
Under these landmark reforms, mutuals have officially been recognised in the Corporations Act, and will have greater access to capital raising mechanisms.
The reforms will create a new type of capital instrument, a Mutual Capital Instrument (MCI), which is specially designed to meet the unique requirements of the sector.
To help mutuals utilise MCIs, these organisations will be given a special standardised procedure allowing them to amend their constitutions so they can issue the capital instrument.
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