The Binding Force of Cooperative Principles in Portuguese Law: Definition, Implementation, and Jurisprudential Enforcement

Abstract

This article examines the legal and conceptual foundations of cooperative principles, demonstrating that cooperatives are far more than “mere enterprises.” While cooperatives engage in economic activity, their identity is defined by a distinctive normative and ethical framework embodied in the Statement on the Cooperative Identity adopted by the International Cooperative Alliance (ICA) in 1995. The seven cooperative principles—voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education and training, cooperation among cooperatives, and concern for community—constitute the core of the cooperative model and have been legally incorporated into Portuguese law through Article 3 of the Portuguese Cooperative Code.

Tracing the historical evolution of Portuguese cooperative legislation, from the Law on Cooperative Societies of 1867 to the Decree-Law No. 454/80 and its subsequent amendments, the article highlights how the legislator progressively recognized the binding force of cooperative principles, transforming them from moral guidelines into enforceable legal norms.

The theoretical analysis is complemented by the discussion of a landmark judicial decision—Judgment of the Guimarães Court of Appeal, 25 May 2016 (Case No. 860/13.5TJVNF.G1)—in which the court declared null a statutory provision imposing an excessive admission fee (€150,000), holding it contrary to the principle of voluntary and open membership. This case illustrates the jurisprudential affirmation of the binding nature of cooperative principles, demonstrating that statutory autonomy within cooperatives is limited by their legal and ethical foundations.

Ultimately, the article concludes that compliance with cooperative principles constitutes a conditio sine qua non for the lawful operation and legitimacy of cooperatives. These principles, possessing both ethical and normative force, define the cooperative’s social function, ensure its democratic governance, and safeguard its identity within the Portuguese legal system.