Member-to-Member financial transactions

Member-to-Member financial transactions (M2M) are not something new in finance. These financial transactions are executed between members of the same cooperative or between members of other Legal Entities based on membership. M2M financial transactions exists at least from the begin of XIX century when began history of cooperatives. Today in the world, cooperative organizations serve over 700 million members. from more than 72 countries and all of them are using M2M transactions.
M2M financial transaction are not subject to national and international regulation. Such transactions are regulated only by Statute of cooperative as all others internal corporate transaction. National and International regulation is not applied in this case at all. Any accountant can confirm that any movement of assets inside Legal Entity are not subject of taxation because national regulation does not regulate any movement of assets "from table to table" inside of company. Nobody pay taxes if pencil was moved from table of John to table of Peter inside Legal Entity, for example. But if John works in Amazon and Peter works in Walmart and they moved the same pencil from table to table of different companies - this operation is regulated by national Law and is subject of taxation. That is why financial results of M2M transactions and transactions between Legal Entities which are not member of any cooperative are different. In one case parties have loses of income in other case these loses are equal zero.

Main Menu

See Also

Main Menu