Four-part series explains cooperative structures and differences in membership, governance, capital.
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COLUMBIA, Mo. - Starting a cooperative involves decisions about who can become a member, how members exercise control and how the business raises capital. A new series of University of Missouri Extension publications helps Missourians understand how state law shapes those decisions.
These new resources build on that recognition by helping Missourians understand the laws that guide the formation, ownership and governance of cooperative businesses, the authors say.
Developed by Keri Jacobs, associate professor of agricultural and applied economics, and Barry Langford, law instructor, both in MU’s Division of Applied Social Sciences, the four publications explain Missouri’s three primary cooperative statutes and compare their provisions. The resources offer a starting point for producers, business owners and community groups exploring a cooperative, as well as members, directors and managers of existing cooperatives, according to Jacobs and Langford.
Missouri’s cooperative statutes provide different options for organizing and operating a member-owned business. Understanding those differences can help organizers evaluate which structure fits their goals and help existing cooperatives better understand the framework governing their operations.
The series examines stock-based cooperative structures under Chapter 357, flexible membership and investment options under Chapter 351, and agricultural producer cooperatives under Chapter 274. A companion publication compares the three statutes, helping readers understand how they differ in purpose, membership, member control, capital structure and operating flexibility.
The authors say the publications help readers think through practical questions: Who will use and own the cooperative? How will voting rights be structured? What capital will the business need? How will its organization support member benefits?
For groups considering a new cooperative, the series can support early planning and more informed discussions with legal, accounting and business advisers. For existing cooperatives, it offers an educational resource for board development and conversations about ownership, governance and future business needs.
All four publications are available for free online: