1778

LAWS OF MARYLAND

Ch. 548

PROVIDING SERVICES OR REDUCING CHARGES TO ITS MEMBERS OR

OTHER PATRONS OR ACQUIRING ASSETS WHICH WILL ENABLE THE

CONSUMER COOPERATIVE TO BETTER SERVE THE NEEDS OF SUCH

MEMBERS OR OTHER PATRONS.

(B) THE BOARD OF DIRECTORS MAY USE ANY SURPLUS OR
SAVINGS FOR:

(1)    DEVELOPMENT OF THE BUSINESS OF THE
COOPERATIVE;

(2)    COMMON SERVICES; OR

(3)    DISTRIBUTION AS PATRONAGE REFUNDS.

5-6A-05.

IF A CORPORATION CHARTERED UNDER THE GENERAL
CORPORATION LAW OF THIS STATE ORGANIZES OR CONVERTS INTO A
CONSUMER COOPERATIVE AND CONDUCTS ITSELF ACCORDING TO THE
PRINCIPLES OUTLINED IN THIS SUBTITLE, THE BOARD OF DIRECTORS
OF THE CORPORATION MAY BY A THREE QUARTERS MAJORITY VOTE
ADOPT A NAME THAT INCLUDES THE WORD "COOPERATIVE" OR "CO-OP"
ANY VARIATION THEREOF.

5-6A-06.

(A)    A CONSUMER COOPERATIVE MAY ESTABLISH A CLASS OF

VOTING CAPITAL STOCK OR A CLASS OF NONSTOCK VOTING

MEMBERSHIP IN ITS ARTICLES OF INCORPORATION.

(B)     (1) A CONSUMER COOPERATIVE ALREADY ORGANIZED
WITH VOTING STOCK MAY AMEND ITS ARTICLES OF INCORPORATION TO
PROVIDE FOR CONVERSION OF ITS VOTING STOCK AT NOT LESS THAN
PAR VALUE TO NONSTOCK VOTING MEMBERSHIPS.

(2) AT THE TIME OF ANY CONVERSION, A VOTING
STOCK SHALL CONVERT TO A NONSTOCK VOTING MEMBERSHIP OR, AT
THE HOLDER'S ELECTION, TO A NONVOTING CAPITAL STOCK OF EQUAL

(C)    A NONSTOCK VOTING MEMBERSHIP

(1)    SHALL BE PERMANENT CONTINUING UNLESS
TERMINATED BY:

(I)     A WRITTEN REQUEST FROM THE MEMBER; OR

(II)   FAILURE TO PATRONIZE THE FACILITIES
OR TO VOTE IN ANY ELECTION OF THE CONSUMER COOPERATIVE FOR
THREE CONSECUTIVE YEARS.

(2)    MAY NOT RECEIVE DIVIDENDS ANY RETURN ON
CAPITAL;

(3)    MAY NOT BE TRANSFERRED TRANSFERABLE; AND

(4)    DOES NOT ENTITLE THE OWNER TO ANY SHARE