Legal

How is this all possible?

People’s Spotlight is a Limited Cooperative Association of Colorado. Cooperative law allows organizations across the United States to operate like People’s Spotlight.

Colorado is one of a few states to have adopted the Uniform Limited Cooperative Association Act (“ULCAA”). Title 7, Article 58, contains the Colorado Limited Cooperative Association Act (“LCA”), which was passed in 2010. ULCAA retains central cooperative principles and “guard rails” but permits outside “investor-members” to have limited voting rights and a share of revenue or profits. TheMembers are not personally liable for obligations or debts of the cooperation. By joining a cooperative you are protected by the legal entity that is the cooperative and release personal liability from your work and contributions. Bylaws and governing documents are essential to cooperatives because they outline liability protection as well as indicate the methods of governance flexibility. These bylaws are what adhere members to the cooperative structure.

LCA is a hybrid entity, pairing the features and controls of more traditional corporate governance with the flexibility of an unincorporated entity, like an LLC or a limited liability partnership.

Unlike traditional cooperatives which are for members-only, LCAs allow for the option of an investment membership tier – enabling the coop to accept operating and growth capital beyond its general membership tiers (patron/contributor) and therefore generates a profit for both the benefit of its members and the interests of stakeholders. In