30.0502 Operations-Limitations.

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A nonprofit cooperative corporation may be incorporated in accordance with the provisions of chapters 01, 02, 03, and 05 of this title except that:

(a) Voting powers must be one vote for each member, regardless of stock ownership.

(b) Financial surpluses must be disposed of in accordance with the principle of services at cost to members after allowance of interest on capital at a reasonable rate and provision for prudent reserves.

(c) The name of the corporation must include the word “cooperative” in lieu of the words “corporation”, “incorporated”, or “limited’’.

(d) The minimum limitation on authorized and paid-in capital stock does not apply.

(e) No dividends on capital stock may be declared.

History: 1962, PL 7-17.