Cooperatives

The cooperative is a special legally regulated development association. It has no investors, but members who pursue a promotional purpose in joint self-help. The legal form of the cooperative is particularly suitable for company founders if they are not concerned with merely achieving a capital investment success, but for example with the joint sale of goods or services or the provision of housing for the members.

A characteristic of the cooperative is that it can be adapted particularly flexibly to the respective ideas and goals of the company founders. For example, the articles of association can permit the admission of investing members. It is also possible for the cooperative to participate in companies and other associations of persons if this can serve its promotional purpose. In this way the cooperative can also achieve an investment return.

Compared to securities and other asset investments, the cooperative has the advantage that shares may be offered to the public without a prospectus. For investment advice on cooperative shares or their brokerage, the person offering them does not need a licence under the German Banking Act (KWG); instead, a licence for financial investment brokers under § 34f of the German Trade, Commerce and Industry Regulation Act (GewO) is sufficient. However, this is not a special feature for cooperative shares, but applies to all asset investments. In contrast to other asset investments, for which self-distribution is prohibited pursuant to Section 5b para. 3 VermAnlG, a cooperative can also offer its shares to the public itself.

After all, the cooperative is an attractive legal form for many entrepreneurs. The drafting of the respective articles of association is particularly important and should therefore only be carried out by specialised lawyers.