3-1-10. Members -- Qualifications and liabilities -- Voting rights.

314 words·~1 min read·/ut/title-3/chapter-1/3-1-10

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

(1)As used in this section, "patronage" means business or services transacted or performed by a member or shareholder with an association.

(a)An association may only have as members or issue common stock to:

(i)current producers of agricultural products;

(ii)tenants and landlords receiving a share of the crop; and

(iii)cooperative associations of those producers.

(b)The incorporators named in the articles shall be members of the association, and shall pay the same amount and in the same manner for their membership or stock as do other members.

(3)A stockholder may not hold more than one share of the common voting stock.

(a)Under the terms and conditions prescribed in the bylaws, a member shall lose his or her membership if that member no longer qualifies for membership under this section.

(b)Despite termination of membership under Subsection (4)(a) , the former member shall remain subject to any liability he or she incurs while a member of the association.

(5)A member is not personally liable for any debt or liability of the association.

(i)A member or stockholder is entitled to:

(A)one vote based on the amount of stock or membership capital owned; and

(B)additional votes, if the bylaws provide that a member or shareholder is entitled to more than one vote based on actual patronage of the association.

(ii)A vote may not be cast by proxy, unless the member is a corporation, in which case its vote may be cast by an authorized representative.

(i)The bylaws of an association may provide that a member may vote by signed ballot.

(ii)The member's signature on a ballot shall be notarized by a notary public before the ballot can be counted in any election.

Amended by Chapter 70 , 2003 General Session