§ 7102. Cooperative corporations generally.

278 words·~1 min read·/pa/title-15/chapter-71/7102

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

(a)General rule.-- Any corporation incorporated under this part may be organized on the cooperative principle by setting forth in its articles a common bond of membership among its shareholders or members by reason of occupation, residence or otherwise and that it is a cooperative corporation.

(b)Applicable law.-- A corporation incorporated under this subpart shall be governed by the applicable provisions of this subpart and, to the extent not inconsistent with this subpart:

(1)Subpart B (relating to business corporations) if its articles state that it is incorporated for a purpose or purposes involving pecuniary profit, incidental or otherwise, to its shareholders or members or if its articles are silent on the subject.

(2)Subpart C (relating to nonprofit corporations) if:

(i)its articles state that it is incorporated for a purpose or purposes not involving pecuniary profit; or

(ii)it is subject to Chapter 73 (relating to electric cooperative corporations).

(c)Credit unions.-- This subpart shall not apply to a credit union, whether proposed or existing, except as otherwise provided by Title 17 (relating to credit unions).

(d)Workers' cooperative corporations.-- Except as otherwise expressly provided in Chapter 77 (relating to workers' cooperative corporations), only Chapters 1 (relating to general provisions), 5 (relating to corporations) and 77 shall apply to a corporation subject to Chapter 77. A cooperative corporation may be incorporated under this chapter notwithstanding the fact that its corporate purposes consist of or include a purpose or purposes within the scope of Chapter 77.

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(Dec. 19, 1990, P.L.834, No.198, eff. imd.)

Cross References. Section 7102 is referred to in sections 7104, 7105, 7106, 7107 of this title.

15c7103s