2.4.2 The Greek social cooperative enterprise (Koinsep)

See arts. 1(3) and 2(2)(α) of the Greek Social Entrepreneurship Law of 2011 and arts. 14(1) and (2)(α) in Law 4430/2016 concerning Social and Inclusive Economy and Development of its Institutions and Other Provisions. In that legal framework ‘Integration’ is defined as the process of social inclusion for individuals who belong to what is called ‘vulnerable groups’ and other ‘special groups’ through their promotion in employment and through their participation in labour opportunities. Accordingly, any Koinsep of Integration is required to apply a minimum employment quota and employ individuals who belong to such groups.

‘Social care’ is defined as healthcare and welfare activities, for the benefit of specific beneficiaries such as the elderly, infants, children, the disabled and the chronically ill. See ibid arts. 1(5) and 2(2)(β) of the Greek Social Entrepreneurship Law of 2011.

The collective purpose falls within the scope of a social purpose, which is stipulated by definition to all Koinsep in art. 2(1) of the Social Entrepreneurship Law of 2011. The collective purpose is further defined as an objective, which aims to promote collective needs and/or protect common goods through the development of economic and social initiatives of a local, regional or general character. Such initiatives are: (i) the promotion of local and collective interests; (ii) the development of employment; (iii) the enhancement of social cohesion; and (iv) the empowerment of local or regional development. These activities may also include, among others, the production of goods and the provision of services, which meet the needs of society in terms of culture, the environment, ecology, education, social benefit services, the promotion of local products, and the maintenance of traditional activities related to arts and crafts. See ibid, arts. 1(2) and 2(2)(γ) of the Social Entrepreneurship Law of 2011. However, in the latest amendment of the Social Entrepreneurship Law of 2011, the category Koinsep of Care and the category Koinsep of Collective and Productive Purpose are grouped into one broader Koinsep category, i.e. the Koinsep of Collective and Social Benefit see art. 14(2)(β) of the Law 4430/2016 concerning Social and Inclusive Economy and Development of its Institutions and Other Provisions. The wider purpose of the new broader Koinsep category – according to art. 2 (2) of Law 4430/2016 – is the pursuit of: (i) a ‘collective benefit’, which is defined as the service of the members’ needs through the establishment of equal relations of production, the creation of stable and decent jobs, the reconciliation of personal, family and professional life; and (ii) a ‘social benefit’, which is defined as serving social needs of a local or broader character by means of social innovation through ‘sustainable development’ or ‘social services of general interest’ or ‘social integration activities’.

ibid, arts. 2(3) and 11 of the Social Entrepreneurship Law of 2011 and in art. 4 of the Law 4430/2016 concerning Social and Inclusive Economy and Development of its Institutions and Other Provisions.

Ministerial Decision concerning the Registry of Social Economy, No. 2.2250/4.105, Official Government Gazette 221/09.02.2012. Therefore, registration scrutinises whether the Koinsep’s SoA contain general mandatory elements stipulated in the applicable legislation to the Koinsep and a social purpose as is explicitly prescribed in the legislation. The general criteria are included in arts. 3-6 of the foregoing Ministerial Decision, namely: (a) it must have at least five members; for the Koinsep of Integration seven members are required; (b) it must not have legal persons as members exceeding one-third of the total number of members; (c) it must not have members which are municipal authorities; (d) it must not have members who are legal persons and public law entities that may belong to municipal authorities (an exception is provided for the Koinsep of Integration); (e) it must only have members holding at least one cooperative share; (f) it must provide only one vote to the members regardless of the number of shares that they hold; (g) it must have a managing committee whose members are also members of the cooperative; (h) it must not distribute profits to its members; an exception is provided for members who are also employees; and (i) it must allow 35% of its profits to be distributed to its employees.