What is mutuality?
“The essential characteristic of a mutual [co
-operative] business is that thosewho contribute to a common fund as part of a scheme for their mutual benefitmust be the same persons as those who are entitled to participate in any
surplus that arises from the operation of the scheme.”
“Members contribute equitably to, and democratically control, the capital of their
co-operative. At least part of that capital is usually the common property of theco-operative. Members usually receive limited compensation, if any, on capitalsubscribed as a condition of membership. Members allocate surpluses for anyor all of the following purposes: developing their co-operative, possibly bysetting up reserves, part of which at least would be indivisible; benefitingmembers in proportion to their transactions with the co-operative; and
supporting other activities approved by the membership.”
ICA, Third Cooperative Principle