In contrast to traditional corporations, cooperatives use a variety of governance mechanisms to make democratic decisions. In general, co-ops lean towards one-vote-per-owner vs. traditional organizations that use weighted voting based on the share of ownership.
Consumer co-operatives: owned by consumers who buy goods or services
Producer co-operatives: owned by producers of goods who process and market their products
Purchasing co-operatives: owned by businesses to improve purchasing power
Worker: owned and governed by employees
Hybrid co-operatives: a combination of the above (this is what People’s Spotlight’s model is - worker, consumer, producer hybrid)
Members 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.