279.500 Nonprofit operation.

134 words·~1 min read·/ky/chapter-279/279-500

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

(1)A cooperative shall be operated on a nonprofit basis for the mutual benefit of its

members and patrons. The bylaws of a cooperative or its contracts with members

and patrons shall contain such provisions relative to the disposition of revenue and

receipts as may be necessary and appropriate to establish and maintain its nonprofit

and cooperative character. In the case of a cooperative authorized to issue shares of

stock, such bylaws or contracts shall provide that no moneys shall be paid or credits

given on the basis of patronage except after the declaration or payment of dividends

on the outstanding shares of stock in accordance with the articles of incorporation

of the cooperative, and such bylaws or contracts shall otherwise be consistent with

the cooperative's obligations in respect of such shares of stock.