Reflections on the growing commercialization of cooperatives in line with the new law of cooperatives of Extremadura

Abstract

In Spain, cooperatives were originally excluded from the scope of Commercial Law. They have been progressively undergoing a commercialization process that has led them to be considered as a special type of commercial company. As an important part of the so-called social economy, its purpose should be very different from the merely lucrative one of the typical mercantile societies, especially those of the capitalists. For this it is essential that they remain faithful to the principles of cooperativism formulated by the International Cooperative Alliance. In theory, this is so, since both the state cooperative law and the different regional laws express their submission to such principles and values. However, an analysis of its regulation, especially the last of these laws promulgated: Law 9/2018, of October 30, Cooperative Societies of Extremadura, may call into question this statement. With the idea of safeguarding the economic viability of these types of societies, the practical application of two of the pillars of cooperativism is being avoided: mutualism and democracy. The easing of the prohibition of carrying out operations with third parties and the possibility that it is not the cooperative members that have a majority of votes in the General Assembly to form the social decision are consequences of a regulation that is reducing the distance between cooperatives and capitalist societies, especially regarding the limited liability company. In the face of those who consider cooperative principles and values an obstacle to the development of cooperativism, a flexible interpretation is advocated, but more respectful of the nature of the cooperative, it is a penalty to denature these types of societies, turning them into pseudocapitalist companies that do not justify a treatment differentiated privileged as the one they possess.