Cooperatives have frequently been identified with the Rochdale Principles [1] but IMO the main criteria for a coop is that each shareholder has an equal vote. This is contrasted with a generic corporation where it might be said that each share conveys one vote but each shareholder may own any number of shares and thus control many votes. The consequence of this distinction is that cooperatives tend to be more democratically governed than corporations. However, such distinctions can be diminished or amplified by the terms of each organizations charter and bylaws. Thus it is legally possible to create an autocratic coop or a democratic corporation. Ironically it is possible to make almost any common form of legal ownership or organization mimic the operation of any other form by crafting the charter and bylaws to do so. The specific regulations imposed on a particular legal form of ownership are determined by statutes and common law and vary from place to place and from time to time. It is difficult but very helpful to find a lawyer familiar with the comparative advantages and disadvantages of each form of ownership recognized and regulated by a given jurisdiction. Such knowledge can only be maintained in detail and kept up to date by professionals practicing in such areas of specialty. ~Richard 1. https://en.wikipedia.org/wiki/Rochdale_Principles
Posted on: Fri, 31 Oct 2014 20:50:35 +0000
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