BLAIR LEE III, Acting Governor                            1777

be under the new subtitle, "Subtitle 6A.

Consumer Cooperatives"
Annotated Code of Maryland
(1975 Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Corporations and Associations

SUBTITLE 6A. CONSUMER COOPERATIVES

5-6A-01.

IN THIS SUBTITLE, "CONSUMER COOPERATIVE" MEANS A

MEMBERSHIP CORPORATION CONVERTED OR ORGANIZED UNDER THIS

SUBTITLE, WHICH OPERATES FOR THE MUTUAL BENEFIT OF ITS

MEMBERS AND CONFORMS TO THIS SUBTITLE.

(A)    IN THIS SUBTITLE, THE FOLLOWING WORDS HAVE THE
MEANING INDICATED.

(B)    "CONSUMER COOPERATIVE" MEANS A CORPORATION

CONVERTED OR ORGANIZED UNDER THIS SUBTITLE, WHICH OPERATES

OR INTENDS TO OPERATE ON A COOPERATIVE BASIS FOR THE MUTUAL

BENEFIT] OF ITS MEMBERS AND PATRONS AND CONFORMS TO THIS

SUBTITLE.

(C) "MEMBER" MEANS A PERSON WHO FOR THE PURPOSE OF
OBTAINING GOODS OR SERVICES FOR PERSONAL, LIVING, OR FAMILY
USE OWNS VOTING STOCK IN A CORPORATION HAVING CAPITAL STOCK

OR HOLDS A NONSTOCK VOTING MEMBERSHIP INTEREST IN A

CORPORATION NOT HAVING VOTING CAPITAL STOCK.

5-6A-02.

A MEMBER OF A CONSUMER COOPERATIVE HAS ONLY ONE VOTE,
REGARDLESS OF THE AMOUNT OF STOCK OR MEMBERSHIP CAPITAL
OWNED.

5-6A-03.

THE CONSUMER COOPERATIVE MAY NOT PAY DIVIDENDS ON STOCK
OR MEMBERSHIP CAPITAL, ANY RETURN ON CAPITAL STOCK IN EXCESS
OF 8 PERCENT PER ANNUM.

5-6A-04.

(A)         AFTER PAYMENT OF EVERY NECESSARY EXPENSE AND

AUTHORIZED DEDUCTION OR RESERVE, THE PROCEEDS FROM THE

BUSINESS OF THE CONSUMER COOPERATIVE SHALL BE USED FOR THE

BENEFIT OF THE MEMBERS IN SUCH A MANNER AS TO AVOID ONE MEMBER
GAINING AT THE EXPENSE OF OTHERS ALLOCATED OR DISTRIBUTED TO

MEMBERS OR PATRONS IN PROPORTION TO THEIR PATRONAGE OR

RETAINED BY THE CONSUMER COOPERATIVE FOR THE PURPOSE OF