A cooperative is a means of mutual assistance for the benefit of everybody. It is a voluntary association of individuals of indefinite duration and limited liability with full legal capacity, whose main purpose is service.
Cooperatives are governed by statutes and the law of cooperative associations. In a cooperative, everybody has the same rights and obligations.
The unique characteristics of a cooperative business:
- individuals seek to provide services and mutual benefit.
- from the profits they benefit from the provision of services.
- the main aim is to provide quality and affordable services and provide benefit to the members.
- any surpluses are returned to the members in proportion to their activities or services.
- members manage, have a voice and vote.
- the number of members is unlimited, anybody who so wishes can join, in accordance with the statutes.
- the objectives are dependent on the needs of members.
- they are governed by the participation of members .