What does the term "shareholder" refer to in relation to a community association?

The term "shareholder" in relation to a community association specifically refers to members who own shares in a cooperative association. In the context of a cooperative, residents typically do not own their individual units outright. Instead, they own shares in the cooperative entity, which entitle them to use a specific unit and participate in the community's decision-making processes. This ownership structure aligns with the definition of a shareholder, as they hold a vested interest in the cooperative based on their share ownership.

Understanding this distinction is crucial, as it delineates the rights and responsibilities of individuals within cooperative arrangements. Unlike traditional property ownership, where individuals hold title to their property, shareholders in a cooperative are part of a collective ownership model. This model can influence governance, financing, and the management of the community amenities and responsibilities.