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 Rhode Island, cooperative associations are typically formed under specific state statutes that provide for their creation, governance, and operation. These statutes outline the rights and duties of the members, as well as the procedures for the management of the cooperative. The cooperative's charter or articles of incorporation, along with state law, dictate how the cooperative is run, member involvement, and the distribution of profits. In Rhode Island, each member of a cooperative association has an equal say in the control of the association, which means that regardless of the number of shares owned, each member has one vote. This is in contrast to traditional corporations where voting power is typically proportional to the number of shares held. 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 aligns the members' rewards with their contribution to the cooperative's success. It's important to note that specific regulations can vary, and for detailed guidance, consulting with an attorney who has expertise in cooperative law in Rhode Island is advisable.