Section 5-508 - Stock.
§ 5-508. Stock.
(a) Power of cooperative over its stock and membership.- A cooperative may:
(1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;
(2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote;
(3) Limit the number of shares of stock which a person may hold; and
(4) Reserve to the board of directors:
(i) The option to purchase for the cooperative the stock offered by any stockholder; and
(ii) The right to redeem the stock of any stockholder.
(b) Exercise of option to purchase or redeem stock.- If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value.
(c) Restrictions.- A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:
(1) Set forth in the charter; and
(2) Printed on any stock subscription document and the stock certificate.
[An. Code 1957, art. 23, § 365; 1975, ch. 311, § 2.]