The Society is a co-operative society registered in England under the Industrial and Provident Societies Acts and not a company registered under the Companies Acts. However, as described in note 1 to the financial statements, the Society is required substantially to prepare its accounts as though it were an insurance company registered under the Companies Act 1985.
The issued share capital consists of 105,000 £1 shares of which 50p has been called. Following the creation of the new holding society for Co-operative Insurance Society Limited (CIS) and The Co-operative Bank plc (the Bank), the shares held by Co-operative Group (CWS) Limited (Co-operative Group) were transferred to Co-operative Financial Services Limited (CFS) in July 2002. The directors of CIS each hold one share as a nominee for CFS for the duration of their office. No dividends have been paid on share capital in respect of the year and the rate of interest payable on the paid-up share capital is limited by rule to 12% per annum.
The Society is part of a financial services business within the Co-operative Group, one of the largest consumer-owned businesses in the world. The Co-operative Group is seeking to enable CIS customers to participate in its democratic processes and for economic participation across the Group's family of businesses. Profits on general insurance business may be used to contribute to the Group through the payment of dividends. In the case of long term business, all surpluses are applied for the benefit of life assurance and pension policyholders, including the making of reserves with the aim of preserving the strength of the long term business fund.
