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Code · Kentucky · Chapter 272 — Cooperative corporations and associations

272.010 Definitions.

440 words·~2 min read·/ky/chapter-272/272-010

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)As used in KRS 272.020 to 272.044:
(a)"Cooperative corporation" means a business concern that distributes the net
profit of its business by first paying a fixed dividend upon its stock, if any, and
then prorating the remainder of its profits as patronage refunds to its
stockholders, members or customers, as provided in bylaws;
(b)"Patronage refund" means the portion of net profit returned to member patrons
or to all patrons in proportion to their patronage. In the case of an employee
cooperative in which only employees are voting members, "patronage" means
the amount or value of work performed by an employee, as provided in
bylaws;
(c)"Stockholder" means the holder of voting stock in a cooperative corporation
organized with shares;
(d)"Member" means the holder of a membership in a cooperative corporation
organized with memberships;
(e)"Membership" means a lifetime payment made to a cooperative corporation to
secure or provide services, not made in expectation of dividend or profit, and
without any redemption value except at time of dissolution. The articles of
incorporation or bylaws may specify the conditions under which a
membership may be terminated;
(f)"Nonprofit basis" means that no part of the income or profit of the cooperative
corporation is distributable to its members, directors or officers except in the
form of patronage refunds;
(g)"Entity" includes a domestic or foreign corporation and corporation; not-for-
profit corporation; profit and not-for-profit unincorporated association;
business or statutory trust; estate; partnership; limited partnership; limited
liability company; trust; two
(2)or more persons having a joint or common
economic interest; and state, United States, and foreign government;
(h)"Name of record with the Secretary of State" means any real, fictitious,
reserved, registered, or assumed name of a business entity; and
(i)"Real name" shall have the meaning set forth in KRS 365.015.
(2)As used in KRS 272.360 to 272.510, unless the content for such requires otherwise,
the term:
(a)"Livestock" shall mean sheep, cattle, hogs, horses, jacks, mules, poultry, or
any other animal or bird commonly kept on the farm;
(b)"Farmer" shall mean any individual, firm, partnership, limited partnership,
limited liability company, corporation, or farm management group which
derives a portion or all of its income from the production of live stock
domiciled on a farm within the Commonwealth;
(c)"Member" shall include actual members of the association organized under
KRS 272.360 to 272.510;
(d)"Association" means any corporation organized under KRS 272.360 to
272.510; and
(e)"Department" shall mean the Department of Agriculture.
(3)Associations organized under KRS 272.360 to 272.510 shall be termed nonprofit
inasmuch as they are not organized to make profit for themselves.
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