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 West Virginia (WV), 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 establishment and management of the cooperative. The cooperative's charter or articles of incorporation, along with state law, dictate how the cooperative is run, member obligations, and how profits are distributed. In WV, each member of a cooperative association generally has equal ownership and an equal vote in the association's affairs, regardless of the number of shares they hold. This principle of 'one member, one vote' distinguishes cooperatives from other business entities where control is often proportional to the number of shares owned. Profits in a cooperative are typically distributed among the members based on their usage or patronage of the cooperative's services or products, rather than on the number of shares owned. This means that the profit allocation is based on the value of purchases made by each member during the period in which the profits were generated, aligning the members' rewards with their contribution to the cooperative's success.