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5.11: Hybrid Cooperative Organizational Forms

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  • Some cooperatives have organized themselves into so-called hybrids by retaining their cooperative governance as much as possible but allowing outside investors to invest in the cooperative. In the U.S., these blend elements of mutual-benefit companies and investor-benefit firms, especially limited liability companies. These are rare in the U.S. relative to traditional cooperatives. In all cases, members control the board of directors with a supermajority and retain the board chairmanship; non-members are allowed on the board of directors. In certain countries in the European Union, legislation states that members of employee unions or management may be on the board of directors.