Cooperatives and their function

In short: A cooperative is a form of enterprise whose members jointly promote economic, social or cultural goals. Each member has one vote regardless of their capital share.

In more detail: In Germany, cooperatives are regulated by the Cooperatives Act and must belong to an auditing association.

In detail

• Principle: Promoting members comes first, not maximising profit for outside investors.
• Examples: Housing cooperatives, Raiffeisen banks, cooperative banks, energy cooperatives.
• Membership: Acquiring shares, often with limited financial risk.
• Democracy: One member, one vote, regardless of the size of their stake.
• Advantages: Stability through a broad membership base, co-determination on important decisions.
• History: The first cooperatives arose in the 19th century, among others through Friedrich Wilhelm Raiffeisen.
• Comparison: Differs from public companies through its promotional purpose rather than profit orientation (aktien-und-börse-grundlagen-für-einsteiger).