Why might the “share capital” of a co-operative be classified as a liability, not equity? Because:
a.
Members are able to redeem their shares on demand
b.
Co-operatives as legal entities are covered by special legislation (Co-operative Companies Act 1996; and Industrial and Provident Societies Act 1908)
c.
Shareholders vote in annual general meetings on a one-member, one-vote basis, instead of a one-share, one-vote basis
d.
Shareholders receive rebates, not dividends