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 Pennsylvania, cooperative associations are typically formed under the Pennsylvania Cooperative Corporation Law of 1988 or other relevant business statutes. These cooperatives are designed to serve the mutual benefit of their members and are governed by state law, their charter, and articles of incorporation. Membership in a cooperative association in Pennsylvania entails equal ownership and control rights for each member, which means that each member has one vote in decision-making processes, regardless of the number of shares they hold. Profits generated by the cooperative 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 with the cooperative principle that economic participation is tied to the use of the cooperative's services rather than capital investment.