A reform of Italian co-operative law was passed in 2003 and came into force in 2004. This paper presents the principal characteristics of the new Italian co-operative law and seeks to evaluate the relationship of some of its main provisions to traditional co- operative principles. From this perspective, the paper deals in particular with the definition of the Italian co-operative as a company with a "mutual purpose"; the distinction between "mainly mutual" co-operatives and "other" co-operatives (and the relationship between mutuality and profit-making in co-operatives); the regulation of voting in the assembly (the "one member, one vote" principle and its exceptions); the available governance systems ("tripartite", "dualistic", "monistic"); and co-operative finance solutions (investor members and financial instruments). Using the Italian reforms as a starting point for debate, this paper puts forth the possibility of generalising a modified approach to co-operative regulation and principles, taking into account efficiency issues, while preserving the co-operative identity.