Is it a matter of returning funds based on transaction volume or does it conform to the fundamental principles of cooperatives?
Shanshan Feng
China Cooperative Research Institute, Anhui University of Finance and Economics
DOI: https://doi.org/10.59429/bam.v8i2.14527
Keywords: farmer cooperatives; surplus distribution; return according to transaction volume
Abstract
Farmer specialized cooperatives, as special economic organizations boosting agricultural and rural development, differ from others in surplus distribution—Principally return according to transaction volume. In China, cooperatives are complex, diverse, and have variable property structures. As capital contribution often outweighs transaction contribution, a locally suited surplus distribution method is needed. Considering risks and returns, the current democratic method combines share-based and transaction-volume-based distribution. Due to member heterogeneity, share-based distribution dominates, with transaction-volume addition reflecting rationality and bylaw normativity. Whether to reconsider this principle and explore a local, farmer-protective method merits study. Reviewing the development and importance of domestic cooperative surplus distribution, this paper finds China's system imperfect and requiring further legal regulation.
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