21-1303. Cooperative corporation; additional powers; stockholder vote; conditions; adoption of articles and bylaws.
362 words·~2 min read·
/ne/chapter-21/21-1303A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Every cooperative company which shall organize under sections 21-1301 and 21-1302 shall have power
(1)to regulate and limit the right of stockholders to transfer their stock,
(2)to restrict stock ownership to producers of agricultural products and, if such restriction is adopted, to provide an equitable procedure for redeeming the stock of any holder who is determined not to be a producer of agricultural products,
(3)to provide that each individual holder of common stock may be limited to one vote per person, regardless of the number of shares of stock which he or she may own, at any stockholders' meeting and that such vote may be cast only in person, or by a signed, written vote if the stockholder has been previously notified in writing of the exact motion or resolution on which the vote is taken,
(4)to limit the amount of capital stock that any one person or corporation may own either directly or indirectly,
(5)to prohibit or to limit the amount or percentage of the total business which may be transacted with nonmembers,
(6)to set aside each year to a surplus fund a portion of the savings of the company over and above all expenses and dividends or interest upon capital stock which surplus may be used for conducting the business of the corporation, and
(7)to adopt articles and bylaws for the management and regulation of the affairs of the company which shall set the number of directors, the terms of such directors, including any provisions for the staggering of such terms, the number or percentage of stockholders or shares of stock required to be present, in person or by proxy, in order to constitute a quorum at each stockholders' meeting, which number or percentage shall not be less than ten percent of the stockholders but never more than fifty nor less than five stockholders. Members represented by signed, written vote may be counted in computing a quorum only on those questions as to which the signed, written vote is taken.
Cooperative associations are given power to engage in enterprises requiring capital. Schmeckpeper v. Panhandle Coop. Assn., 180 Neb. 352, 143 N.W.2d 113 (1966).