How worker and other cooperatives are created and run in Spain

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1. A cooperative is a society formed by people who freely join together to run a business activity that meets their economic and social needs, with democratic operation. Its name must include «Sociedad Cooperativa» or the abbreviation «S. Coop.».
2. The law applies to cooperatives operating in several Autonomous Communities and to those in Ceuta and Melilla. Only three members are needed to set up a first-degree cooperative, and the society gains legal personality when it is registered in the Registry of Cooperatives.
3. Each member has one vote in the General Assembly, although the bylaws may allow weighted plural voting in some types of cooperatives, with limits such as a maximum of five votes per member.
4. A member may leave the cooperative voluntarily at any time with written notice of at most one year. Their capital contributions are refunded within a maximum of five years, and deductions can only be applied in very specific cases, such as an unjustified departure that breaks the minimum stay period.
5. At least 20 % of cooperative surpluses must go to the mandatory reserve fund and 5 % to the education and promotion fund. The latter funds training for members and workers, promotion of cooperatives and community projects, and cannot be split among members.
6. Cooperatives may merge with each other or even with civil or commercial companies (special merger), and may transform into another type of company without dissolving. Members who did not vote in favor have the right to leave and get their contributions back.
7. In worker cooperatives, the member's relationship with the cooperative is corporate, not employment-based. Salaried employees cannot exceed 30 % of the hours worked by worker members, with some exceptions.
8. Cooperatives may join unions, federations and confederations to defend their interests, and the Council for the Promotion of the Social Economy is created as an advisory body for the Administration. The Government must approve the Regulations of the Registry of Cooperatives within six months.

Who it affects

• People who want to create or join a cooperative: Only three members are needed to set one up, and they know their voting, information and departure rights.
• Members of worker cooperatives: Their relationship with the cooperative is corporate, with specific rules on working hours, leave and discipline.
• Salaried employees of cooperatives: Their hours cannot exceed 30 % of those of worker members, with exceptions, and they can become members.
• Creditors of cooperative members: They cannot seize the cooperative's assets or the members' capital contributions.
• Existing cooperatives: They have three years to adapt their bylaws to the new law.

Words worth knowing

Estatutos (bylaws)

The internal rules of the cooperative: how it works, what rights members have and how decisions are made.

Consejo Rector (Governing Council)

The governing and representative body of the cooperative, elected by the General Assembly.

Asamblea General (General Assembly)

The meeting of all members where important matters of the cooperative are debated and approved.

Retorno cooperativo (cooperative return)

The share of profits distributed to members in proportion to the activity each one has carried out with the cooperative.

Fondo de educación y promoción (education and promotion fund)

Mandatory money the cooperative must spend on training, promoting cooperatives and helping the community; it cannot be shared out among members.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries