In July 2021, a small Rhode Island café, White Electric Coffee, became the first of its kind in the state to transition to a worker cooperative.
Worker cooperatives have become increasingly popular in the United States. In a worker cooperative, …
Cooperative Governance
California Cooperative Economy Act
On February 19, 2021, California Assemblywoman Lorena Gonzalez introduced AB 1319, which included The Cooperative Economy Act (the “Act”). The Act’s objective is to introduce a worker cooperative model into the gig economy by permitting workers to form worker cooperatives …
Telephone Cooperative Directors: Legal Risks and Privacy Concerns
AHC attorney, David Cook, recently spoke to a group of directors of telephone cooperatives about legal risks and privacy concerns. The telephone and telecommunication utilities hailed from several states to North Carolina for the conference. The presentation covered topics …
The Effect of USPS Rate Increases on Cooperatives
On May 28, 2021, the United States Postal Service (USPS) filed notice with the Postal Regulatory Commission (PRC) for rate increases, which will be effective on August 29, 2021. The rate increases range from 5% to 8% for various products …
Formation Documents for Cooperatives Structured as Corporations
When a group interested in forming a cooperative is deciding between a cooperative structured as a corporation and a cooperative structured as an LLC, the group often has questions about the differences in the required formation documents and the ability …
Selling Preferred Shares in Cooperatives
This final post in the series addresses sales of preferred shares. Unlike common shares, preferred shares can offer dividends and in most states, can be sold to both members and non-members. Preferred shares offer cooperatives an opportunity to obtain funds …
Legal Requirements for Selling Common Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares, and whether non-members can purchase shares as an investment in the cooperative. In this second …
The Role of Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares, and whether non-members can purchase shares as an investment in the cooperative. In this first …
New IRS Ruling: The Timing of Patronage Business for Allocations
In a new ruling, the Service considered the period of historical patronage business that should be used to calculate the gain on a liquidation sale.
Coop was a cooperative within the meaning of Subchapter T. It struggled in …
Potential Exit from Power Supply Cooperative
Dakota Energy has filed a lawsuit concerning its potential exit from a wholesale power supplier, East River Electric. Dakota Energy’s concern is that East River’s bylaws require, as a condition to withdrawal, satisfaction of contractual obligations to East River. And …