Eh, I think this is where it's important to distinguish between different types of corporation. The very point of going through YC is to trade ownership and control for external capital: the capital ends up in control of the business. Other types of corp other than "limited liability with shares" are possible.

However the article describes something even looser. It's more like the opposite of a boycott, a loose buyer's group focusing on directing spending towards something positive rather than away from something negative.

> the people in power would just abuse the coops - theft, misdirection of resources towards “friends”

The US has recently seen a sharp uptick of this kind of thing, under the cover of law.