Argentina commemorates centenary of Law 11.388 for cooperatives

Argentina marks the centenary of Law 11.388, a landmark piece of legislation that officially recognized the unique legal nature of cooperatives. Prior to this law, cooperatives were improperly subordinated to the Commercial Code, treating them as standard commercial societies.

The law established specific regulations for the constitution and operation of these entities, such as agricultural cooperatives, granting the non-profit sector autonomy and independence from profit-driven commercial models. It aimed to combine business logic with internal and external solidarity, focusing on satisfying member needs at fair prices rather than maximizing profit.

This legislative framework faced a significant setback in 1973 when a military government issued Decree 20.337, which effectively repealed Law 11.388. This decree forced cooperatives to operate under provisions intended for commercial societies, a move described as a blow to the cooperative movement.