A cooperative association is a business entity formed by individuals for their mutual benefit, and is usually organized under general state business laws or specific state statutes governing cooperative associations. The rights and duties of the members of a cooperative association are governed by state statutes and by the association’s charter or articles of incorporation.

Each shareholder in a cooperative association has equal ownership and an equal share in the control of the association, regardless of the number of shares of stock held by the shareholder. Profit earned by the association is divided among the shareholders based on the amount of their purchases during the period the profit was earned.

In Florida, cooperative associations are typically governed by Chapter 617, Florida Statutes, which covers not-for-profit corporations, and Chapter cooperative associations. These statutes provide the framework for the formation, operation, and dissolution of cooperative associations. Members' rights and duties, as well as the specifics of profit distribution and control, are outlined in the association's charter or articles of incorporation, as well as in its bylaws. Each member of a cooperative association in Florida generally has an equal vote, regardless of the number of shares they hold, ensuring democratic control. Profits are distributed among members based on their patronage, or the amount of business they conduct with the cooperative, rather than on the number of shares owned. This aligns with the cooperative principle that members benefit in proportion to their use of the cooperative's services, rather than their investment in shares.