The Chilean cooperative legislation is contained in Decree with force of Law No. 5, found in the General Law on Cooperatives, published in the Official Journal dated February 17, 2004, in the Regulations of the General Law on Cooperatives, contained in Supreme Decree No. 101, published in the Official Journal dated January 25, 2007, norms issued by the Department of Cooperatives currently the Associative Division and Social Economy, under the Sub-secretary of Economy and Smaller Enterprises, the Ministry of Economy, Development and Tourism and, standards dictated by the Central Bank of Chile contained in Chapter III.C.2, its compendium of financial rules.
For cooperatives, compliance with the national legislation that governs them is not difficult, since, that the regulations do not have a degree of complexity, their terms are commonly used and the audit body within its powers when necessary has interpreted the rules and has given the corresponding instructions.
Key recommendations for improvement
- Avoid the unfair treatment that exists between cooperatives and corporations.
- To incorporate and recognize in the Political Constitution of the Republic the social function fulfilled by cooperatives.
- Provide greater swiftness to the dictation of norms complementary to the law.
- Regulate partner-consumer disputes found in the Consumer Rights Protection Law.
It should be noted that the National Congress is discussing a reform of the national tax system at the time this report was being drafted, which will review all exemptions and privileges that certain business entities are entitled to. Likewise, the executive branch is currently considering the drafting of a new Political Constitution of the Republic, an opportunity in which the cooperative sector will request the incorporation of the social purpose of cooperatives.
The legal frameworks analysis is a tool developed under the ICA-EU Partnership #coops4dev. It is an overview of the national legal frameworks at the time of writing. The views expressed within are not necessarily those of the ICA, nor does a reference to any specific content constitute an explicit endorsement or recommendation by the ICA.