That is basically the definition of communism. communism is one answer to the question "Democracy is supposed to be a good thing for our public governments, why do our for for-profit endeavors not run under democratic means?"
So the communist answer is "fold the manufacturing government into the rest of the government"
Communism has many problems, for one they never actually restore democratic means, to the point that "peoples republic" is sort a joke term for dictatorship. but the one in scope is that running an operation from a large central government will remove the focus a business needs to work well. self-interest is a powerful force multiplier.
In a for profit cooperation the voting rights holders are usually those who have invested in the operation, or them who have bought these voting rights from others. They are usually run as a sort of dictatorship, which does dis-enfranchise the workers, but works very well with small groups.
But the main point was if you want to operate your endeavor as a government instead of as an individual person than it needs to incorporate. The government does not need to be democratic, and it usually is not.
And consider towns, they use the same vocabulary "incorporate" when they want to form a local government.