(1) The terms “cooperative association” and “association” include any cooperative
organization, association, company, or corporation formed under this article and may
be further defined as follows:
(a) The distribution of its earnings is made wholly or in part on the basis of, or
in proportion to, the amount of property bought from or sold to members, or to members
and other patrons, or of labor performed or other service rendered by the association,
but such association shall not deal in products, handle supplies, or provide services
for nonmembers in an amount greater in value than as are handled by it for members.
(b) Dividends on stock or interest on equity capital shall be limited, as prescribed
in the bylaws of the association.
(c) Voting rights shall be limited to members of the association.
(d) Such association and its business shall not be carried on for profit but for the
mutual benefit of all the members. Any person, firm, or corporation of any other cooperative association may become
a member of such association upon meeting uniform terms and conditions stated in its
bylaws. The association shall issue a certificate of membership to all who become members,
which shall not be assignable or transferable except upon consent of the board of
directors. The association shall have the right by the bylaws to limit transfer or assignment
of membership and the terms and conditions upon which transfer shall be allowed.
(e) Any association formed pursuant to this article may admit to membership any other
association so formed or formed under the law of any other jurisdiction upon such
terms and conditions as may be provided by the bylaws. Any association formed under the provisions of this article may acquire membership
in any other association likewise formed under the provisions of this article when,
in the judgment of the directors, such membership shall promote the interest and purpose
for which such association is formed.
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