Agriculture Reference
In-Depth Information
multi-million-dollar business. While these charges are serious, and one could probably fi nd
evidence of situations in which they are justifi ed, it would be unfair and incorrect to assume
that they are the general rule.
Another possible disadvantage of the cooperative form of business arises from the require-
ment in many states that each member of a cooperative only be allowed one vote on issues
for consideration, regardless of how many shares of cooperative stock the individual may
own. As farms have consolidated and gotten larger, some feel that those with larger business
volume and/or the number of shares of stock should have more say in the operation of the
cooperative.
Cooperatives: a brief history
Again, because of the importance of cooperatives to agriculture a bit of background helps to
understand their context. Ancient Egypt had traces of cooperative-like organizations as early
as 3000 B . C . and there are vestiges of cooperative ideas in Greek, Roman, and Chinese
cultures. The fi rst farmers' cooperatives are reported to be those of Swiss dairy farmers, who
made cheese cooperatively as early as the thirteenth century.
Early Americans also experimented with cooperatives. Benjamin Franklin organized a
mutual insurance company (a cooperative) in 1752. However, many people recognize
the fi rst formal cooperative of modern times to be the Rochdale Society of Equitable
Pioneers in England in 1844. The original 28 members of this early cooperative joined in
an effort to purchase supplies for their businesses. The Rochdale Principles, adopted by
the Rochdale Society to guide the operation of their cooperative, included the following
points:
1.
Capital should be of member's own providing and bear a fi xed rate of interest.
2.
Only the purest provisions procurable should be supplied to members.
3.
Full weight and measure should be given.
4.
Market prices should be charged and no credit given or asked.
5.
“Profi ts” should be divided pro rata upon the amount of purchases made by each
member.
6.
The principle of one member, one vote should govern, and that there should be equality
of the sexes in membership.
7.
Management should be in the hands of the offi cers and committees elected periodi-
cally.
8.
A defi nite percentage of profi ts should be allotted to education.
9.
Frequent statements and balance sheets should be presented to members.
While some of the principles have been modifi ed over time, this set of Rochdale principles
still provides the basic organizing framework for cooperatives today.
Limited liability companies
A limited liability company (LLC) is a type of business organization form that closely
resembles a partnership, but provides its members with limited liability. Thus, creditors or
others who have a claim against an LLC can pursue the assets of the LLC to satisfy debt and
other obligations, but they cannot pursue personal or business assets owned by the individual
members of the LLC.
 
Search WWH ::




Custom Search