450.3134 Cooperative organized on member capital basis, member fee basis, or basis combining member capital and membership fee; powers.
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450.3134 Cooperative organized on member capital basis, member fee basis, or basis combining member capital and membership fee; powers.
Sec. 1134.
(1)A cooperative which is organized on a member capital basis or on a basis combining member capital and membership fee may provide for any of the following, if such provision is set forth in the articles or bylaws:
(a)A maximum member capital to be held by any 1 member.
(b)Transfer of member capital pursuant to section 304(6).
(c)Mandatory contribution or contributions of member capital as a condition or conditions of admission to or retention of membership, including but not limited to initial capital contributions, surcharges, and distributions of net savings pursuant to section 1135.
(d)A dividend on membership capital, not to exceed 8% per year.
(e)Special assessments on members.
(2)A cooperative which is organized on a membership fee basis or on a basis combining member capital and membership fee may provide for either or both of the following as a condition or conditions of admission to or retention of membership in the cooperative, if such a provision is set forth in its articles or bylaws:
(a)The charging of a nonredeemable initial or periodic membership fee or fees.
(b)Nonredeemable special assessments on members.
History: Add. 1984, Act 209, Eff. Nov. 1, 1985