HARRY HUGHES, Governor

3483

(A)  A COOPERATIVE MAY LIMIT IN ITS ARTICLES OF
INCORPORATION THE NUMBER OF SHARES OF STOCK THAT A PERSON MAY
HOLD.

(B)  IF A MEMBER DESIRES TO WITHDRAW FROM A CONSUMER
COOPERATIVE OR DISPOSE OF ANY OR ALL OF THE MEMBER'S INTEREST IN
THE COOPERATIVE, THE DIRECTORS OF THE COOPERATIVE HAVE THE OPTION
TO PURCHASE THAT INTEREST BY PAYING THE PAR VALUE OR BOOK VALUE,
WHICHEVER IS LESS, OF ANY OR ALL OF THE INTEREST OFFERED.

(C)  IF THE COOPERATIVE FAILS, WITHIN 60 DAYS OF THE
ORIGINAL OFFER, TO PURCHASE ALL OR ANY PART OF THE INTEREST
OFFERED, THE MEMBER MAY SELL THE UNPURCHASED INTEREST TO A
PURCHASER WHO IS ELIGIBLE FOR MEMBERSHIP IN THE COOPERATIVE.

(D)  A CONSUMER COOPERATIVE MAY PROVIDE IN ITS ARTICLES OF
INCORPORATION FOR A CLASS OF VOTING NONVOTING CAPITAL STOCK OR A
CLASS OF NONSTOCK VOTING MEMBERSHIP.

(E)  A CONSUMER COOPERATIVE ORGANIZED WITH VOTING STOCK MAY
AMEND ITS ARTICLES OF INCORPORATION TO PROVIDE FOR CONVERSION OF
ITS VOTING STOCK AT PAR VALUE OR BOOK VALUE, TO NONSTOCK VOTING
MEMBERSHIPS. WHEN THAT CONVERSION OCCURS, VOTING STOCK SHALL
CONVERT TO NONVOTING CAPITAL STOCK OF PAR VALUE OR, AT THE
HOLDER'S ELECTION, TO A NONSTOCK VOTING MEMBERSHIP.

(F)  A NONSTOCK VOTING MEMBERSHIP SHALL BE CONTINUING UNLESS
TERMINATED BY:

(1)  A WRITTEN REQUEST FROM THE MEMBER;

(2)  THE MEMBER'S FAILURE TO PATRONIZE THE FACILITIES
OR VOTE IN ANY ELECTION OF THE CONSUMER COOPERATIVE FOR 3
CONSECUTIVE YEARS; OR

(3)  THE MEMBER'S FAILURE TO COMPLY WITH THE ARTICLES
OF INCORPORATION OR BYLAWS OF THE COOPERATIVE AFTER RECEIVING
NOTICE AS REQUIRED IN THE BYLAWS.

5-5A-09.

IF A CORPORATION CHARTERED UNDER THE GENERAL CORPORATION LAW
OF THIS STATE 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 MAJORITY VOTE
ADOPT A NAME THAT INCLUDES THE WORD "COOPERATIVE" OR ANY
VARIATION OR ABBREVIATION THEREOF.

5-5A-10.

THE FOLLOWING COOPERATIVES ARE ENTITLED TO USE THE WORD
"COOPERATIVE", OR ANY ABBREVIATION OR DERIVATION THEREOF, AS PART
OF THEIR BUSINESS NAMES, OR TO REPRESENT THEMSELVES IN THEIR
ADVERTISING OR OTHERWISE AS CONDUCTING BUSINESS ON A COOPERATIVE
BASIS: