§ 8-1-13-23 — Classification of corporations; general district corporation and local district corporation distinguished

Indiana § 8-1-13-23

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 13: Rural Electric Membership Corporation Act

Text

Any corporation to be formed under this
chapter shall be either a general district corporation or a local district
corporation.
(a) A general district corporation is a corporation formed under this
chapter for the purpose of furnishing services to local district
corporations. A general district corporation may be formed to do
business in all, or a stated number of the counties of this state. No such
corporation shall have the authority or right to do business with a local
district corporation in any county already named as a part of the
territory of another general district corporation unless, prior to its
incorporation, consent for it to transact business in that county shall
have been given by the existing general district corporation or
corporations then authorized to furnish services to the local district
corporations in that county. However, nothing in this chapter shall be
construed to allow such a newly formed general district corporation to
engage in the business to acquire, own, operate, maintain, and improve
a system or systems. A general district corporation may be organized
by:
(1) a group consisting of one-third (1/3) of the heads of farm
families in all the counties included;
(2) the directors of an association of agricultural producers, the
members of which reside in nine-tenths (9/10) of the counties
named within the said corporation's territorial limits;
(3) the directors of the county or regional stockholder
corporations within the state having as stockholders or members
more than seventy-five thousand (75,000) producers of
agricultural products within the state of Indiana; or
(4) the board of directors of another general district corporation
organized under this chapter.
(b) A local district corporation is a corporation formed under this
chapter for the purpose of furnishing services to its members. A local
district corporation shall not be permitted to exercise any of the powers
granted under this chapter until at least one-half (1/2) of the heads of
farm families residing in the territory described in its proposed articles
of incorporation shall have agreed in writing to become members of the
corporation and made a minimum payment for such membership as in
said articles provided.
Formerly: Acts 1935, c.175, s.21; Acts 1937, c.258, s.13. As
amended by Acts 1980, P.L.70, SEC.1.