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 Virginia, cooperative associations are recognized as a type of business entity that is formed for the mutual benefit of its members. These entities are typically governed by specific state statutes that outline the formation, operation, and dissolution of cooperatives. Virginia's cooperative laws can be found in the Virginia Cooperative Association Act. According to this Act, members of a cooperative association have rights and duties as set forth by the state statutes and the association's charter or articles of incorporation. Each member of a cooperative has an equal say in the control of the association, which is a principle known as 'one member, one vote,' regardless of the number of shares they hold. 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 own. This structure is designed to benefit the members by allowing them to have equitable control and to share in the profits based on their individual contributions to the cooperative's success.