HARRY HUGHES, Governor

1705

Article - Corporations and Associations

Section 5—6A-06

Annotated Code of Maryland

(1975 Volume and 1978 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be repealed, amended, or enacted to read as follows: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

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
value.

(c)   A nonstock voting membership

(1)   Shall be 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; OR

(III) FAILURE TO COMPLY WITH THE ARTICLES
OF INCORPORATION, BYLAWS, SUBSCRIPTION AGREEMENT, OR
OCCUPANCY AGREEMENT OF THE COOPERATIVE AFTER RECEIVING ANY
NOTICE REQUIRED BY THE COOPERATIVE DOCUMENTS.

(2)   May not receive any return on capital;

(3)   May not be transferable; and

(4)   Does not entitle the owner to any receipts
of the proceeds of any dissolution, liquidation, or sale of
the assets of the corporation except after payment of not
less than par value to the holders of any class of
outstanding capital stock; AND

(5)   SHALL HAVE A DEFINITE VALUE FOR TRANSFER OR
SALE, AND A STATEMENT AS TO HOW THIS VALUE IS COMPUTED SHALL
BE INCLUDED IN EITHER THE ARTICLES OF INCORPORATION, BYLAWS,