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 Oregon, 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 Oregon, each member of a cooperative has an equal say in the control of the association, which is a fundamental principle of cooperative governance. This means that regardless of the number of shares owned, each member has one vote. 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 they hold. This reflects the cooperative principle of distributing surplus earnings to members in proportion to their use of the cooperative, rather than strictly on investment.