Cooperative, also known as a co-op, is a type of business organisation that is owned and operated by a group of individuals who come together to meet their common economic, social, and cultural needs. In a cooperative, members pool their resources, such as money, skills, and labor, to achieve mutual benefits. The main objective of a cooperative is to provide goods or services to its members at a fair price, while also promoting democratic decision-making and community development. Co-ops can be found in various sectors, including agriculture, housing, retail, and finance, and they often prioritize sustainability, equality, and social responsibility.
A cooperative is a business or organisation owned and operated by its members, who share in the profits and decision-making.
A cooperative is owned and controlled by its members, who have equal voting rights, while a corporation is owned by shareholders who may not have equal voting rights.
Members of a cooperative can benefit from shared resources, lower costs, and a democratic decision-making process.
To become a member of a cooperative, you typically need to purchase a membership share and agree to abide by the cooperative’s bylaws.
Yes, you can usually leave a cooperative by selling your membership share or transferring it to another eligible member.
Profits in a cooperative are typically distributed to members based on their level of participation or patronage with the cooperative.
Yes, a cooperative can be sued like any other business entity, but the liability may be limited to the cooperative’s assets.
Members of a cooperative may be eligible for certain tax benefits, such as deductions for patronage dividends.
Yes, cooperatives can merge with other cooperatives to create a larger, more efficient organisation.
Decisions in a cooperative are typically made through a democratic process, with each member having an equal vote.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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