Section 7-8-1. – Short title.
§ 7-8-1. Short title. This chapter may be cited as the “Consumer Cooperative Association Law”. History of Section.P.L. 1947, ch. 1976, § 1; G.L. 1956, § 7-8-1.
Section 7-8-10. – Contents of bylaws.
§ 7-8-10. Contents of bylaws. The bylaws may, in addition to the provisions permitted by § 7-1.2-203(a), except where inconsistent with this chapter, provide for: (1) The method and terms of admission to membership and the disposal of members’ interests on cessation of membership for any reason; (2) The method of distributing the net savings […]
Section 7-8-11. – Meetings of members.
§ 7-8-11. Meetings of members. (a) Regular meetings of members shall be held at least once a year. Special meetings may be demanded by a written petition of at least one-tenth (1/10) of the membership, in which case it is the duty of the secretary to call the meeting to take place within thirty (30) […]
Section 7-8-12. – Voting rights.
§ 7-8-12. Voting rights. Each member of an association shall have only one vote, except that where an association includes among its members any number of other associations or groups organized on a cooperative basis, the voting rights of the member associations or groups may be as prescribed in the articles of association or bylaws. […]
Section 7-8-13. – Proxy and mail votes.
§ 7-8-13. Proxy and mail votes. (a) No member is permitted to vote by proxy, except that the articles of association or bylaws may provide for the casting of ballots by mail and may include in the provisions a provision allowing ballots to be sent to members absent from a meeting. However, the voting shall […]
Section 7-8-14. – Mail voting included in statutory provisions.
§ 7-8-14. Mail voting included in statutory provisions. If an association has provided for voting by mail, or by delegates, any provision of this chapter referring to votes cast by members is construed to include votes cast by mail, or by delegates, but this does not permit delegates to vote by mail. History of Section.P.L. […]
Section 7-8-15. – Apportionment of directors among units.
§ 7-8-15. Apportionment of directors among units. The bylaws may provide for a method of apportioning the number of directors among the units into which the association may be divided, and for the election of directors by the respective units to which they are apportioned. History of Section.P.L. 1947, ch. 1976, § 14; G.L. 1956, […]
Section 7-8-16. – Restriction on dividends.
§ 7-8-16. Restriction on dividends. The return upon capital shall not exceed six percent (6%) per year upon the paid up capital and is noncumulative. History of Section.P.L. 1947, ch. 1976, § 15; G.L. 1956, § 7-8-16.
Section 7-8-17. – Membership of organizations — Payment of capital as prerequisite to membership.
§ 7-8-17. Membership of organizations — Payment of capital as prerequisite to membership. No corporation or organization or group of any kind shall be eligible to membership in an association unless it is organized on a cooperative or nonprofit basis, and no person, association, or organization or group of any kind shall be deemed a […]
Section 7-8-18. – Share and membership certificates.
§ 7-8-18. Share and membership certificates. (a) No certificate for share or membership capital shall be issued until its par value has been paid for in full. There shall be printed on each certificate issued by an association a full or condensed statement of the requirements of § 7-8-12, the first clause of the first […]
Section 7-8-19. – Application of corporation and franchise taxes to associations without stock.
§ 7-8-19. Application of corporation and franchise taxes to associations without stock. (a) For the purposes of taxation, under chapters 11 and 12 [repealed] of title 44, of an association formed under this chapter without capital stock, the words “share” and “stock” and “capital stock” are construed to include within their meaning memberships in the […]
Section 7-8-2. – Definitions.
§ 7-8-2. Definitions. As used in this chapter, unless the context otherwise requires: (1) “Association” means any corporation formed under this chapter. (2) “Capital”, in the case of an association formed without capital stock, means the aggregate amount of consideration for which the total number of memberships in the association were issued. (3) “Cooperative basis”, […]
Section 7-8-20. – Association’s preemptive right to repurchase shares.
§ 7-8-20. Association’s preemptive right to repurchase shares. If any holder of shares desires to dispose of any or all of his or her holdings in the association, he or she shall offer the holdings to the association, and the directors have the power to purchase, within ninety (90) days of the offer, the holdings […]
Section 7-8-21. – Transfer of holdings.
§ 7-8-21. Transfer of holdings. If the association fails, within ninety (90) days, to purchase all or any part of the holdings offered, their holder may dispose of the unpurchased interest elsewhere. No transferee of holdings in an association is entitled to the rights of membership until the transferee fulfills the requirements of eligibility of […]
Section 7-8-22. – Recall of shares.
§ 7-8-22. Recall of shares. The bylaws may give the directors the power to use the reserve funds to recall, at par value, the holdings of any member in excess of the amount requisite for membership. The bylaws may also provide that if any member has failed to patronize the association during a period of […]
Section 7-8-23. – Impairment of solvency prohibited.
§ 7-8-23. Impairment of solvency prohibited. No purchase or recall shall be made by the directors under § 7-8-20 or any other section if to do so would impair the solvency of the association. History of Section.P.L. 1947, ch. 1976, § 18; G.L. 1956, § 7-8-23.
Section 7-8-24. – Expulsion of members.
§ 7-8-24. Expulsion of members. The bylaws may make provision for the expulsion of members by a two-thirds (⅔) vote of the members present at a regular or special meeting. The bylaws shall provide for the giving to a member of written notice of the charges against him or her at least three (3) weeks […]
Section 7-8-25. – Exemption of holdings from attachment.
§ 7-8-25. Exemption of holdings from attachment. The holdings of any member of an association, to the extent of the minimum amount necessary for membership, but not to exceed fifty dollars ($50.00), is exempt from attachment, execution, or garnishment for the debts of the owner. History of Section.P.L. 1947, ch. 1976, § 21; G.L. 1956, […]
Section 7-8-26. – Apportionment of net savings.
§ 7-8-26. Apportionment of net savings. At least once a year, the members and/or directors, as provided in the articles of association or bylaws, shall apportion the net savings of the association, after payment of return on capital, and after deduction of sums retained for proper corporate purposes, which may include an educational fund and […]
Section 7-8-27. – Contents of annual report.
§ 7-8-27. Contents of annual report. The annual report of an association shall include a statement of the receipts, expenditures, assets, and liabilities of the association, and shall, in the case of a nonshare association, include, in lieu of the statement concerning its authorized and issued capital stock required by § 7-1.2-1501, a statement of […]