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 New York, cooperative associations are typically formed under the Cooperative Corporations Law. This law provides the framework for the creation, operation, and dissolution of cooperative associations, which are designed to serve the mutual benefit of their members. The rights and duties of members are dictated by state statutes as well as the cooperative's charter or articles of incorporation. In a cooperative association, each shareholder has equal ownership and an equal say in the control of the association, irrespective of the number of shares they hold. This means that all members have one vote in decision-making processes. Profits generated by the cooperative are distributed among the shareholders based on the volume of their purchases or patronage during the profit-earning period, rather than on the number of shares owned. This structure is intended to reflect the cooperative principle of member economic participation, where members contribute equitably to, and democratically control, the capital of their cooperative.