Section 308A.125 Stock and Nonstock Organization

308A.125 STOCK AND NONSTOCK ORGANIZATION.

Subdivision 1.Stock and nonstock cooperatives have same authority.

Cooperatives organized on a capital stock basis may be organized and have the same powers and authority as cooperatives organized without capital stock on a membership basis.

Subd. 2.Capital stock organization.

A cooperative is organized on a capital stock basis if holding shares of common stock entitles the holder of the stock to vote.

Subd. 3.Nonstock organization.

(a) The articles of a nonstock cooperative must contain the provisions required in the articles of a cooperative organized on a capital stock basis if the provisions are applicable to a cooperative organized upon a membership basis.

(b) Except for cooperatives constituted partially or entirely of other cooperatives, a member of a cooperative organized on a membership basis may not have more than one vote, and a membership is transferable only with the consent and approval of the board.

History:

1989 c 144 art 1 s 9