§ 10-15-20 — Stock - Authorization, control, use, right

North Dakota § 10-15-20

• Jurisdiction: North Dakota
• Title 10: Corporations
• Ch. 10-15: Cooperative Associations

Text

1. A cooperative organized with capital stock may issue the amount of stock stated in its
articles. The stock may be divided into two or more classes with the designations,
preferences, limitations, and relative rights as stated in the articles, except that:
a. Stock as such has no voting power.
b. Stock without par value may not be authorized or issued.
c. The rate of dividends upon stock may not exceed eight percent of its par value for
any year, and dividends may not be cumulative.
2. The articles may require that members own one or more shares of membership stock.
Such stock shall be issued or transferred only to a person eligible to become a
member and only when such person satisfies other requisites for membership. Unless

restricted by the articles, stock other than membership stock may be issued or
transferred to any person.
3. Unless the articles provide otherwise, a cooperative may acquire, recall, exchange,
redeem, and reissue its own stock. Provisions in the articles and on the stock
certificate may reserve to the cooperative a prior right to acquire any stock offered for
sale, or a right to recall the stock of any stockholder, or both of said rights. The
consideration paid for stock recalled by the cooperative shall be its par value and
accrued unpaid dividends; provided, that if the book value of such stock is less than
the par value, the consideration shall be such book value. The cooperative may set off
obligations of the stockholder to it. If the remaining assets would be less than the
aggregate amount payable to creditors and persons holding stock with preferential
rights upon liquidation, no stock shall be acquired, recalled, exchanged, or redeemed
for a consideration other than stock or certificates of equity interest of equal or
subordinate rank.
4. When stock is acquired, recalled, exchanged, or redeemed by the cooperative, such
stock is restored to the status of authorized but unissued stock.
5. Stockholders as such have no pre-emptive right to purchase additional stock.