§ 4A-12A-10

Maryland § 4A-12A-10

• Jurisdiction: Maryland
• Article gca: Corporations and Associations
• Title: 4A

Text

§4A–12A–10. NOT IN EFFECT

** TAKES EFFECT OCTOBER 1, 2026 PER CHAPTERS 198 AND 199 OF 2025 **

(a) A limited worker cooperative association may include multiple classes of members whose rights and membership interests shall be determined by the cooperative agreement.

(b) To begin business, a limited worker cooperative association must have at least three worker members unless the sole member is a limited worker cooperative association.

(c) A person becomes a member of a limited worker cooperative association:

(1) As provided in the articles of organization or cooperative agreement;

(2) As the result of a merger under Subtitle 7 of this title;

(3) As a result of a conversion under this article, in which another entity elects to be a limited worker cooperative association under this subtitle; or

(4) With the consent of all of the worker members.

(d) A member may not act for or bind the limited worker cooperative association solely by reason of being a member.

(e) Unless the articles of organization provide otherwise, a debt, an obligation, or any other liability of a limited worker cooperative association is solely that of the association and is not the debt, obligation, or liability of a member.

(f) (1) The organization of a limited worker cooperative association under this subtitle does not create a presumption that worker members are employees of the association for any purpose.

(2) If a limited worker cooperative association is taxed as a partnership for federal and State income tax purposes, that fact may not be construed to require that a worker member be considered an employee under any State law.