440 LAWS OF MARYLAND. [CH. 197

CHAPTER 197.

AN ACT to add twenty-eight additional sections to Article
23 of the Code of Public General Laws, title, "Corpora-
ti6ns, " said sections to follow immediately after Section
468 of the said Article and to be numbered 4G9 to 496
inclusive, said sections relating to the formation of co-
operative associations and to their powers, conduct, opera-
tion and dissolution, said sections to be known as the
"Cooperative Association Law. "

SECTION. 1. Be it enacted by the General Assembly of
Maryland, That twenty-eight additional sections be added to
Article 23 of the Code of Public General Laws, title, "Corpor-
ations", said sections to follow immediately after Section 468
of the said Article, and to be numbered 469 to 497 inclusive,
said sections relating to the formation of co-operative associa-
tions and to their power, conduct, operation and dissolution,
said sections to be known as the "Co-operative Association
Law, " as follows:

Section 469. The following terms, whenever used in this
Act, shall be construed as follows:

(a) "Members" shall mean one who owns stock in a cor-
poration 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 associa-
tions shall mean that the following principles are adopted and
used by such corporations or associations:

That such associations are operated for the mutual benefit
of the members thereof, and conform to the following require-
ments:

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 membership 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