Cooperative

Cooperative

A cooperative is a special association that enters into agreements with and for its members. It represents certain joint interests of its members, such as purchase or advertising. For example, a farmer’s cooperative that purchases agricultural machines for joint use. Nowadays, cooperatives are also used for many other initiatives, such as self-employed workers for tendering rules or cooperatives for (citizens) investments in windmill parks or other forms of sustainable energy.

A cooperative is owned by its members and acts on behalf of its members, with the objective of economic gain, which can be profits, but also cost savings or another advantage, such as generating sustainable energy.

Financial liability

The cooperative is a legal entity and therefore responsible for its own actions. Like the private or public limited company, the members are responsible for their own contribution. In a cooperative, agreements can be made whereby possible losses or liability are partly borne by the members.

Incorporation

A cooperative has to be incorporated by at least two persons and is registered in the Trade Register. A civil-law notary has to be involved. He or she shall record the articles of association of the cooperative in a deed of incorporation.

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mr. Daniek Zwarthoed

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Posted on 9 juni 2020
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