Chapter 15 - § 15.4 • COLORADO COOPERATIVE STATUTES

• Jurisdiction: Colorado

§ 15.4 • COLORADO COOPERATIVE STATUTES

Colorado has several statutes relating to the organization and operation of cooperatives.⁴⁸

• C.R.S. title 7, article 55 is a general cooperative statute that may be utilized by almost any type of cooperative business. A number of rural electric cooperatives in Colorado are organized under this statute. With the passage of the Colorado Cooperative Act, forming a Colorado cooperative under article 55 has fallen out of favor.
• The Colorado Cooperative Act, found in C.R.S. title 7, article 56, is a general cooperative statute. It was revised in 1996 and broadened from a statute for agricultural cooperatives to one applicable to nearly any type of cooperative business.⁴⁹ It contains far more guidance than article 55, while remaining flexible in its application. The statute has its roots in the early 1900s.
• The Colorado Uniform Limited Cooperative Association Act, found in C.R.S. title 7, article 58, is a hybrid statute combining standard cooperative principles with partnership and limited liability company law. It is more fully described in § 15.15 of this chapter.
• Cooperatives can be formed under the Colorado Business Corporation Act, the Colorado Limited Liability Company Act, or the Colorado Revised Nonprofit Corporation Act, as long as cooperative principles are incorporated into the governing documents (primarily the articles of incorporation and bylaws, or the operating agreement) of the organization. With a few specific exceptions, federal income tax laws recognize as a cooperative "any corporation operating on a cooperative basis."⁵⁰
• Cooperative housing corporations may be formed as a nonprofit corporation under the Colorado Revised Nonprofit Corporation Act if they also comply with the provisions of C.R.S. title 38, article 33.5.
• Mutual insurance companies may be formed and governed in accordance with C.R.S. title 10, article 12.
• Some Colorado statutes also provide special provisions applicable to certain types of cooperatives. For example, C.R.S. title 40, article 9.5 contains provisions specifically applicable to the regulation of cooperative electric associations.
• Credit unions may be formed and are governed in accordance with C.R.S. title 11, article 30.
• Definitions in C.R.S. § 7-90-102, as well as a variety of other provisions of C.R.S. title 7, article 90, are applicable to cooperatives formed under articles 55 and 56 of title 7 and for-profit and nonprofit corporations operating on a

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