BIM24675 - Mutual associations: specific activities: NHS doctors’ co-operatives: National Association of GP co- operatives

Representative body

The National Association of GP co-operatives is a national representative body for GP co- operatives. The Association has produced a model constitution for its members. In its initial form the constitution precluded a co-operative that adopted it from being accepted as carrying on a mutual trade. This was because the constitution required any surplus on winding up or dissolution to go to a successor body or to charity. Such a requirement is contrary to BIM24110, which requires that any surplus go back to the members and to no one else.

In the case of a recently formed co-operative that:

• has adopted a constitution that precludes its trade from being a mutual trade, but
• the clear intention from the outset was that it carry on a mutual trade, and
• there have been no distributions,
• and the doctors who are members of the co-operative have not opted out of providing out-of-hours patient care in their new post 1 April 2004 contracts, see BIM24671,

you may treat the co-operative as a mutual trader from its inception if the constitution is promptly amended to conform to the requirements in BIM24100 onwards.