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 Utah, cooperative associations are typically formed under the Utah Revised Uniform Limited Cooperative Association Act (Title 16, Chapter 16). This act provides the legal framework for the organization, operation, and regulation of cooperative associations in the state. Members of a cooperative association in Utah have their rights and duties outlined by state statutes and the association's governing documents, such as the articles of incorporation or bylaws. Each member of a cooperative typically has an equal vote in the association's governance, which is a principle known as 'one member, one vote,' regardless of the number of shares they hold. Profits, referred to as 'patronage dividends,' are distributed to members based on the proportion of business they conduct with the cooperative, rather than on the number of shares owned. This structure is designed to benefit members by returning profits to them in relation to their use of the cooperative's services, rather than their investment in shares.