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Did the Cooperative Start Life as a Joint-Stock Company? Business Law and Cooperatives in Spain, 1869–1931

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  • Timothy W. Guinnane

    (Department of Economics, Yale University)

  • Susana Martínez-Rodríguez

    (Departamento de Economía Aplicada, Universidad de Murcia)

Abstract

Studies of Spanish cooperatives date their spread from the Law on Agrarian Syndicates of 1906. But the first legislative appearance of cooperatives is an 1869 measure that permitted general incorporation for lending companies. The 1931 general law on cooperatives, which was the first act permitting the formation of cooperatives in any activity, reflects the gradual disappearance of the cooperative’s “business” characteristics. In this paper we trace the Spanish cooperative’s legal roots in business law and its connections to broader questions of the freedom of association, the formation of joint-stock enterprises, and the liability of investors in business and cooperative entities. Our account underscores the similarities of the organizational problems approach by cooperatives and business firms, while at the same time respecting the distinctive purposes cooperatives served.

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Paper provided by Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica in its series UHE Working papers with number 2010_08.

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Length: 35 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:aub:uhewps:2010_08

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Keywords: cooperative; general incorporation; business enterprise; freedom of association; freedom of contract;

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  1. Guinnane, Timothy W., 2001. "Cooperatives As Information Machines: German Rural Credit Cooperatives, 1883 1914," The Journal of Economic History, Cambridge University Press, vol. 61(02), pages 366-389, June.
  2. Timothy Guinnane & Ron Harris & Naomi R. Lamoreaux & Jean-Laurent Rosenthal, 2007. "Putting the Corporation in its Place," NBER Working Papers 13109, National Bureau of Economic Research, Inc.
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