Deviation from the Rules Concerning Division of a Cooperative Being Divided by Court

Abstract

Relying upon Art. 108a and 108b of Cooperative Law, a motion to divide a cooperative may not be regarded as legally substantive because this would violate the principle of voluntariness which applies to the process of creation or division of an existing cooperative. A situation in which a cooperative is established against the will of its future members and against the will of the majority (as it would occur if the cooperative members who submitted a motion for a division were entitled to make legally substantive claims) is inadmissible. Undoubtedly, such an interpretation would unduly empower the minority, at any time and without restrictions, to effectively advance their own particular interests against the interest of the cooperative as a whole but also against those of its individual members.