Winograd Committee Recommends to Turn Co-Op from Cooperative into Public Company

After Co-Op has been listed on the stock exchange, each member of the cooperative will be awarded a negotiable share with a real value.

The Winograd committee today recommended to the secretariat of the Co-Op Blue Square cooperative to turn the cooperative into a public company, so that each cooperative member receives a negotiable share in exchange for the historic share certificate he owns. The committee said that the process would entail the publication of a prospectus and getting a listing on the stock exchange, so that the shares held by cooperative members may become negotiable and carry real value.

The public committee was appointed by the Co-Op cooperative's secretariat in April 1999 to work out recommendations for the cooperative's future.

Following the publication of the committee's recommendations, Co-Op cooperative chairman Benny Gaon said that the recommendations would be implemented within a year. "This is the genuine privatization of one of the archaic entities set up in pre-state days and no longer suitable for the modern economy of the 21th century", Gaon remarked.

Published by Israel's Business Arena on 22 March, 2000

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