From the Denver Post:
“Colorado is the Delaware of cooperatives,” Schneider said, repeating a phrase popularized by co-op lawyers. “We have some of the best co-op laws in the country.” Delaware’s flexible corporate laws make it an attractive place for many companies to incorporate in. The business model is similar to typical corporations, with one key difference: Cooperatives, popularly known as “co-ops,” are owned by members instead of shareholders or single owners. Members usually are employees or even customers and ownership can entail voting rights in company decisions and profit sharing arrangements. Employee ownership gives all members buy-in in their work, boosting morale and even helping alleviate stratification in companies, Schneider said. “They are coming into fashion,” said Linda Phillips a longtime lawyer who works with cooperative businesses. The advantage for many of her clients is the ability to buy in bulk. With many members, a co-op can have greater purchasing power and ability to take advantage of an economy of scale without the need to raise capital through loans or investments.
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