Abstract: In the late 1990's many cooperatives in South Africa and especially those of an agricultural nature, converted into (limited liability) companies for various reasons. This study will highlight the differences between cooperatives and companies in aspects ranging from initial capital to membership interest of the business models. An explanation of the possible reasons on agricultural cooperatives changing to companies will follow. Statistical data on cooperatives will be emphasized and the three significant conversions: Cooperative Wynbouers Vereniging (KWV), SUIDWES and Oos-Transvaalse Landbou kooperasie (OTK) will be conferred in detail. In conclusion: decisions regarding conversions should rather be based on the specific, realistic situation and interest involved in the case at hand.