450.3138 Advising persons in writing; statement on membership certificate.

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

Sec. 1138.

Prior to accepting a person as a member or any membership fee or member capital, a cooperative shall advise the person in writing of the items in subdivisions

(a)to (g). A cooperative shall also conspicuously state on each membership certificate the items in subdivisions (a), (e), and (f):

(a)A statement that the corporation is a cooperative subject to this act and under what act it is organized.

(b)A statement that the purpose of becoming a member of a cooperative is to assure access to the goods, services, and facilities of the cooperative and not to gain profit.

(c)A statement of voting rights and rights to notice of meetings of members.

(d)A statement of the qualifications for admission to and retention of membership and the right of the cooperative to terminate membership, if any.

(e)A statement of the restrictions, if any, on the transfer of memberships.

(f)A statement of the rights to redemption of a member capital, if any, or a statement that member capital is not redeemable.

(g)A statement of the right of members to call special meetings or cause a mail ballot, to receive annual reports, and to secure other material information concerning the cooperative.

History: Add. 1984, Act 209, Eff. Nov. 1, 1985