21-1302. Cooperative corporation; articles of incorporation; contents.

290 words·~1 min read·/ne/chapter-21/21-1302

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

Every such cooperative company shall provide in its articles of incorporation:

(1)That the word cooperative shall be included in its corporate name and that it proposes to organize as a cooperative corporation;

(2)That dividends on the capital stock shall be fixed but shall not exceed eight percent per annum of the amount actually paid thereon;

(3)That the net earnings or savings of the company remaining after making the distribution provided in subdivision

(2)of this section, if any, shall be distributed on the basis of or in proportion to the amount or value of property bought from or sold to members, or members and other patrons, or of labor performed or other services rendered to the corporation. This subdivision shall not be so interpreted as to prevent a cooperative company from declaring patronage dividends at different rates upon different classes or kinds or varieties of goods handled. This subdivision and subdivision

(2)of this section shall not be so interpreted as to prevent a company from appropriating funds for the promotion of cooperation and improvement in agriculture;

(4)That the articles of incorporation or the bylaws of the company shall give a detailed statement of the method followed in distributing earnings or savings;

(5)The registered office and street address of such registered office;

(6)The current registered agent and the name and street address of such registered agent. A post office box number may be provided in addition to the street address; and

(7)The name and street address of each incorporator.

The requirement of the accumulation of a surplus equal to twenty percent does not restrict the corporation from providing a greater amount. Schmeckpeper v. Panhandle Coop. Assn., 180 Neb. 352, 143 N.W.2d 113 (1966).