Which member in a cooperative may invest in the common stocks of the cooperative?

Which member in a cooperative may invest in the common stocks of the cooperative?

• A. Regular member
• B. Associate member
• C. Provisionary member
• D. Temporary member

Answer: (A)

In a cooperative, ownership of the common stock that represents paid-in capital is tied to full, regular membership. Regular members have completed the membership requirements and enjoy full rights, including the ability to subscribe to and hold common shares, participate in governance, and share in profits. Other member categories—associate or provisional members—usually have restricted rights and are not eligible to hold capital stock. Temporary members are not typically accorded ownership rights either. Because only regular members are recognized as full owners with capital-ownership privileges, they are the ones who may invest in the cooperative’s common stocks.

In a cooperative, ownership of the common stock that represents paid-in capital is tied to full, regular membership. Regular members have completed the membership requirements and enjoy full rights, including the ability to subscribe to and hold common shares, participate in governance, and share in profits. Other member categories—associate or provisional members—usually have restricted rights and are not eligible to hold capital stock. Temporary members are not typically accorded ownership rights either. Because only regular members are recognized as full owners with capital-ownership privileges, they are the ones who may invest in the cooperative’s common stocks.