Revolving Capital in Stock Cooperative Corporations

Charles E. Nieman
1948 Law & Contemporary Problems  
Most of the older cooperative corporations originally were organized with capital structures which differed very little from those of other business corporations. They usually were organized as corporations with capital stock. Typically, they issued only common stock which was divided into shares having a substantial par value, most frequently $ioo. Today, a large and increasing number of cooperatives are organized as nonstock, membership corporations with little or no permanent capital,
more » ... ent capital, and-even in stock cooperatives-the trend is toward decreasing the par value of shares, decreasing the proportion of permanent capital, and increasing the proportion of temporary or interim capital. These changes in the financial structures of typical cooperatives reflect the growing realization of the distinctive nature of the capital required by cooperatives, but raise interesting questions of law.
doi:10.2307/1189867 fatcat:3ac32bg2ojeo3eis7urysigtiu