The Role of Cooperative - RoviesOlives

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The Role of Cooperative

Cooperative

Cooperatives are a special form of company:

1) Their aim is not the profit as it is in a private company, but to protect their  
    members' production giving a better price.
2) The coop is run democratically and virtually every member has one vote for up to
    three votes, as opposed to a private company where there is usually a major
    shareholder who owns at least 51% of shares and runs the company as his own.
3) When a third person meets the terms of the charter and wants to become a
    member of the coop, the coop is obliged to register him, unlike private   
    companies where only if the existing shareholders agree can a third party acquire
    shares.
4) The strength lies in unity, the more members one coop has the stronger it is, this
   is one reason why it is essential that the Coop has at least 20 members and those
   members better not be kins of first degree.



 
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