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 Oklahoma, cooperative associations are typically formed under specific state statutes that cater to their unique structure and operational model. These statutes outline the formation, management, and dissolution of cooperatives, ensuring that members benefit mutually from the association's activities. The rights and duties of members are dictated by both state law and the cooperative's governing documents, such as its charter or articles of incorporation. In Oklahoma, each member of a cooperative association generally has an equal say in the control of the association, which means that each member has one vote regardless of the number of shares they hold. This is in contrast to traditional corporations where voting power is often proportional to the number of shares owned. Profits in a 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 they own. This ensures that the benefits derived from the cooperative are shared equitably among members, reflecting their contribution to the cooperative's success.