Peru has a General Law of Cooperatives (GLC) that constitutes the main rule of application and regulation of all cooperatives in the country. This Law was promulgated by Legislative Decree No. 085, in May 1981. As of the date of this report, the GLC has more than 38 years of validity, during which time it has undergone a series of modifications and derogations.
This Law coexists together with the “General Law of Societies” (GLS), which regulates other collective ways to carry out business activity, and although there have been attempts to incorporate cooperatives as a section of the GLS, and cooperatives have continued to be regulated in their own special Law.
In general, the legislation has not been helping the consolidation of cooperatives in Peru. In that sense, it is urgent to provide the Cooperative Sector with modern and comprehensive legislation that provides legal certainty.
Key recommendations for improvement
• Achieve recognition at the constitutional level, that based on the promotion of the cooperative model, highlights the difference between cooperatives and commercial societies under the Cooperative Act.
• A new General Cooperative Law, since the current law already has more than 38 years of validity. During this period, the General Companies Law was completely amended 3 times.
• Regulate the General Law of Cooperatives in order to avoid the supplementary application of other laws, which causes legal uncertainty because the application or not depends on the duty officer.
The general perception is that the regulations have not contributed to consolidating the development of the cooperative model. Modern standards are required for development without contingencies and legal certainty. An initial and important step has been taken with the modernization of the legislation applicable to savings and credit cooperatives pending the modernization of a new General Law on Cooperatives.
It should be noted, however, the effort that the State has been making to spread the benefits of cooperativism as an enhancer of micro and small businesses.