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 Kansas, cooperative associations are typically formed under specific state statutes that cater to their unique structure and operational model. These statutes outline the formation, governance, and dissolution of cooperatives, ensuring that they operate for the mutual benefit of their members. The rights and duties of members are dictated by both state law and the cooperative's own governing documents, such as its charter or articles of incorporation. In Kansas, each member of a cooperative association generally 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. This is distinct from traditional corporations where voting power is often proportional to the number of shares owned. Profits, or 'patronage dividends,' are distributed among the members based on the volume or value of business conducted with the cooperative, rather than on the number of shares owned. This aligns the members' rewards with their contribution to the cooperative's success. Kansas cooperative law is designed to support these principles and ensure fair and democratic operation of cooperative associations within the state.