CORPORATIONS. 855

Cooperative Associations.

1922, ch. 197, sec. 469.

419. The following terms, whenever used in this sub-title, shall be
construed as follows:

(a) " Members " shall mean one who owns stock in a corporation or
association organized with capital stock or one who holds a certificate of
membership in a corporation or an association organized without capital
stock.

(b) " Cooperative," as applied to corporations or associations shall
mean that the following principles are adopted and used by such corpora-
tions or associations:

That such associations are operated for the mutual benefit of the mem-
bers thereof, and conform to the following requirements:

First, That no member of the association is allowed more than one vote
because of the amount of stock or membership capital he may own therein;

Second, That the association does not pay dividends on stock or mem-
bership capital in excess of 8 per cent per annum;

Third, That the association shall not deal in products or non members
to an amount greater in value than such as are handled by it for members.

Fourth, Proceeds from the business of such association after payment
of all necessary expenses and authorized deductions are distributed to the
members in proportion to the volume of business transacted by said mem-
bers with the association.

1922, ch. 197, sec. 470.

420. (a.) Any number of adult persons, not less than five, at least
two of whom are residents of this State, engaged in the production of
agricultural products as farmers, planters, ranchmen, dairymen, bee
keepers, nut or fruit growers may organize a cooperative association, with
or without capital stock, for the purpose of collectively producing, pro-
cessing, preparing for market, handling, storing, and marketing in inter-
state and foreign commerce, such products of persons so engaged, or of act-
ing as the selling or buying agent or both for its members. Such associa-
tions may have marketing agencies in common and such associations and
their members may make the necessary contracts and agreements to effect
such purposes.

(b.) Said persons shall sign and acknowledge written articles which
shall contain the name of said association and the name and residences of
the persons forming the same. Such articles shall contain also a statement
of the purposes of the association and shall designate the city, town or
village where its principal office shall be located and shall designate an
officer of the association who shall be the resident agent of the association
as required by Section 11 of this article.

(e) The articles, if the association is organized with capital stock, shall
state the amount of such stock, the number of shares and the par value of
each share. The issuance of stock, without expressed par value, shall not

1 Evidently a typographical error.