3492

LAWS OF MARYLAND

Ch. 739

(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 any return on capital
stock in excess of 8 percent per annum.]

[5-6A-04.

(a)  After payment of every expense and authorized deduction
or reserve, the proceeds from the business of the consumer
cooperative shall be allocated or distributed to members or
patrons in proportion to their patronage or retained by the
consumer cooperative for the purpose of 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
majority vote adopt a name that includes the word "cooperative"
or 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