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 Georgia, cooperative associations are recognized as a type of business entity that is formed for the mutual benefit of its members. These entities are typically governed by specific state statutes that outline the formation, operation, and dissolution of cooperatives. The Georgia Cooperative Association Act provides the legal framework for the establishment and functioning of cooperative associations within the state. Under this act, the rights and duties of the members are determined by the cooperative's charter or articles of incorporation, as well as by state law. Each member of a cooperative association in Georgia has an equal say in the control of the association, which is a principle known as 'one member, one vote,' regardless of the number of shares they hold. Profits generated by the cooperative are distributed among the members based on their patronage, or the amount of business they conduct with the cooperative, rather than on the number of shares owned. This ensures that the benefits derived from the cooperative are shared equitably among the members according to their contribution to the cooperative's success.