Table 1. Ownership rights structure of alternative organizational forms
Open
Corporation
Proprietorship Financial
Mutual
Traditional
Cooperative
Assignment of
residual returns
To investors To proprietor To customers To memberpatrons
Separation of
ownership from
other functions
Yes No No No
Control Rights Voting rights
proportional to
shareholdings
Proprietor
possesses all
control rights
Customers have
no control rights
Non-proportional
voting rights
Horizon of
residual claims
Unlimited As long as
proprietor
As long as
customer
As long as patron
Transferability
of residual
claims
Yes No No No
Redeemability
of residual
claims
No No Yes, on customer
demand
Yes, but Board’s
discretion