Colorado § 7-55-101 Cooperative association defined

Colorado Statutes

§ 7-55-101 — Cooperative association defined

Colorado·Title 07 Corporations·Art. Cooperatives - General

(1)The terms cooperative association and association include any cooperative organization, association, company, or corporation formed under this article and may be further defined as follows:

(a)The distribution of its earnings is made wholly or in part on the basis of, or in proportion to, the amount of property bought from or sold to members, or to members and other patrons, or of labor performed or other service rendered by the association, but such association shall not deal in products, handle supplies, or provide services for nonmembers in an amount greater in value than as are handled by it for members.

(b)Dividends on stock or interest on equity capital shall be limited, as prescribed in the bylaws of the association.

(c)Voting rights shall be limited to members of

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(1) The terms cooperative
association and association include any cooperative organization, association,
company, or corporation formed under this article and may be further defined as
follows:

(a) The distribution of its earnings is made wholly or in part on the basis of, or
in proportion to, the amount of property bought from or sold to members, or to
members and other patrons, or of labor performed or other service rendered by the
association, but such association shall not deal in products, handle supplies, or
provide services for nonmembers in an amount greater in value than as are handled
by it for members.

(b) Dividends on stock or interest on equity capital shall be limited, as
prescribed in the bylaws of the association.

(c) Voting rights shall be limited to members of the association.

(d) Such association and its business shall not be carried on for profit but for
the mutual benefit of all the members. Any person, firm, or corporation of any other
cooperative association may become a member of such association upon meeting
uniform terms and conditions stated in its bylaws. The association shall issue a
certificate of membership to all who become members, which shall not be
assignable or transferable except upon consent of the board of directors. The
association shall have the right by the bylaws to limit transfer or assignment of
membership and the terms and conditions upon which transfer shall be allowed.

(e) Any association formed pursuant to this article may admit to membership
any other association so formed or formed under the law of any other jurisdiction
upon such terms and conditions as may be provided by the bylaws. Any association
formed under the provisions of this article may acquire membership in any other
association likewise formed under the provisions of this article when, in the
judgment of the directors, such membership shall promote the interest and purpose
for which such association is formed.

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Legislative History

Source: L. 73: R&RE, p. 428, � 1. C.R.S. 1963: � 30-1-1. L. 96: IP(1) amended, p. 543, � 4, effective July 1. L. 2003: IP(1), (1)(a), (1)(d), and (1)(e) amended, p. 2214, � 51, effective July 1, 2004. L. 2004: IP(1) amended, p. 1408, � 29, effective July 1.