Why is Louisville Community Grocery set up as an LCA?
An LCA is a Limited Cooperative Association. This is a specific legal structure that combines features of a traditional corporation and a cooperative. For this particular community-owned business, it defines the following operational and ownership rules:
- Member Ownership: The organization is owned and run jointly by its members, who share in benefits or profits. Full member-ownership is established at a $150 equity contribution.
- Voting Rights: The LCA structure manages a split voting system between different classes of owners. In general votes, consumer owners hold 60% of the voting power, while worker owners hold 40%.
- Purpose: It operates as a “bottom-up” business designed to address food access, create jobs, and improve health outcomes in Louisville’s west and central neighborhoods.