As used in this article, unless the context otherwise
requires:
(1)Agricultural cooperative means a cooperative in which the members,
including landlords and tenants, are all producers of agricultural products.
(2)Agricultural products means agronomic, horticultural, viticultural,
aquacultural, forestry, dairy, livestock, poultry, bee, and any other farm or ranch
products.
(3)Articles means the articles of incorporation of a cooperative and
includes amended articles of incorporation, restated articles of incorporation, and
other organizational documents of other entities.
(4)Board or board of directors means the board of directors or other
governing body of a cooperative or other entity.
(5)Bylaws means the bylaws adopted by a cooperative and includes
amended bylaws and r
Free access — add to your briefcase to read the full text and ask questions with AI
As used in this article, unless the context otherwise
requires:
(1) Agricultural cooperative means a cooperative in which the members,
including landlords and tenants, are all producers of agricultural products.
(2) Agricultural products means agronomic, horticultural, viticultural,
aquacultural, forestry, dairy, livestock, poultry, bee, and any other farm or ranch
products.
(3) Articles means the articles of incorporation of a cooperative and
includes amended articles of incorporation, restated articles of incorporation, and
other organizational documents of other entities.
(4) Board or board of directors means the board of directors or other
governing body of a cooperative or other entity.
(5) Bylaws means the bylaws adopted by a cooperative and includes
amended bylaws and restated bylaws.
(6) Cooperative means any entity formed under or subject to this article by
election or otherwise, including a cooperative formed under comparable law of
another jurisdiction doing business in this state, and having the following
characteristics:
(a) The business of the cooperative is operated at cost by adjusting the
prices charged for goods or services or by returning any net margins at the end of a
fiscal year on a patronage basis to members and other persons qualified to share in
the net margins pursuant to the articles or bylaws;
(b) Dividends on stock or interest on equity capital is limited, as prescribed in
the articles pursuant to section 7-56-201 or bylaws pursuant to section 7-56-208 of
the cooperative;
(c) Voting rights are limited to members of the cooperative as prescribed in
the articles or bylaws of the cooperative;
(d) The cooperative's business is carried on for the mutual benefit of its
members; and
(e) Members are not liable for any debt, obligation, or liability of the
cooperative.
(7) (Deleted by amendment, L. 2003, p. 2219, � 67, effective July 1, 2004.)
(8) Domestic, when referring to a cooperative or other entity, means an
entity formed under the law of this state.
(9) Equity capital means all investments in the cooperative except loans or
other types of indebtedness, whether made by direct investment, such as
investment in stock or memberships, or by retention of amounts of net savings, net
margins, or net profits allocated to members and other patrons of the cooperative,
or charged to them as part of the transactions between them and the cooperative.
(10) Foreign, when referring to a cooperative or other entity, means an
entity formed under law other than the law of this state.
(11) Member means a person who has been received into the membership
of a cooperative without common stock or a person who has acquired common
stock in a cooperative formed with common stock and, in either case, is authorized
to vote. This subsection (11) shall not preclude a cooperative from designating
persons as both members and stockholders.
(12) Net margins means the receipts from operations less the expenses
thereof.
(13) Patron means a person who may, but need not, be a member of a
cooperative who utilizes the services of the cooperative through the purchase or
sale of property or services to or from the cooperative.
(14) Patronage means the volume or dollar value of business transacted
with the cooperative.
(15) Patronage refund means a portion of a cooperative's net margins paid
or allocated to a patron based on the patron's patronage.
(16) Per unit retain means a deduction authorized by a patron to be made
by the cooperative from proceeds of sale of a product or service by the patron to
the cooperative or by the cooperative on behalf of the patron where the deduction
is based on the value or quantity of the product or service sold to the cooperative or
on behalf of the patron and is deducted as a contribution or investment by the
patron in the capital of the cooperative.
(17) (Deleted by amendment, L. 2003, p. 2219, � 67, effective July 1, 2004.)