Section 1 – Co-Operative Business Corporation

Section 1. A corporation may be organized under chapter one hundred and fifty-six B, with shares having par value, for the purpose of co-operation in carrying on any business or of co-operative trade.

Section 10 – Agricultural, Horticultural and Other Co-Operative Corporations Incorporated Without Capital Stock; Method of Organization; Rights and Powers of Members

Section 10. Agricultural and horticultural associations engaged in any branch of agriculture, horticulture, viticulture, forestry, dairying, the raising of livestock or poultry and any other farming activity or business, if instituted for the mutual benefit of their members and formed for the purpose of doing business without profit to the association itself may be incorporated […]

Section 11 – Powers of Corporations Organized Under Sec. 10

Section 11. Any corporation organized under the preceding section shall have power to mortgage or pledge its real or personal property and to issue promissory notes or other evidences of indebtedness. Such corporation shall also have power to establish reserves and invest the funds thereof in such manner as it may deem advisable or as […]

Section 12 – First Meeting; Selection of Directors

Section 12. The first meeting of the corporation shall be held within six months after the execution of the articles of organization. If the directors of the corporation have been previously chosen in anticipation of its organization, or in connection with a plan for preliminary organization, or in accordance with contracts made in anticipation of […]

Section 13 – Scope of By-Laws; Amendment or Repeal of By-Law

Section 13. In addition to the powers granted by section sixteen of chapter one hundred and fifty-six B, any corporation organized under section ten may provide in its by-laws for the election of directors by districts; for the election of advisory directors who are not members, the number of whom shall not be greater than […]

Section 14 – Membership

Section 14. Membership in such corporations shall be limited to persons engaged in the production of products which are handled or to be handled by the corporation, as specified in its articles of organization, including the lessees or tenants of land used for the production of such products and lessors or landlords to whom are […]

Section 15 – Amendment or Alteration of Articles of Organization

Section 15. Any such corporation may amend or alter its articles of organization in the manner provided by sections seventy to seventy-two, inclusive, of chapter one hundred and fifty-six B, so far as applicable; provided, that such amendment or alteration shall require a vote of three-fourths of the members present and voting at a meeting […]

Section 16 – Marketing Contracts Between Corporation and Members

Section 16. Any such corporation may enter into marketing contracts with its members by which the members shall agree to sell, for any period of time not exceeding ten years, all or any specified part of their products or of certain specified products exclusively to or through the corporation or any agency designated by it. […]

Section 17 – Marketing Contracts; Provisions for Liquidated Damages; Injunction for Breach

Section 17. The marketing contract may fix as liquidated damages specific sums to be paid by a member upon breach of the provisions of said contract requiring sale or delivery of products by the member exclusively to or through the corporation or any agency designated by it, and such provision shall be valid and enforceable […]

Section 18 – Taxation; Filing Fees

Section 18. A corporation organized under the provisions of section ten, and any corporation, association or organization now or hereafter established, organized or chartered without capital stock for a similar purpose under laws other than those of this commonwealth, shall not be liable to taxation under the provisions of chapter sixty-three, but shall be taxable […]

Section 2 – Distribution of Earnings or Profits; Sinking Fund; Limitation Upon Shares Held

Section 2. Such corporation shall distribute its earnings or profits among its workmen, purchasers and stockholders at such times and in such manner as its by-laws prescribe, but at least once in every twelve months. No distribution shall be made, unless at least ten per cent of the net profits have been appropriated for a […]

Section 3 – Co-Operative Agricultural, Dairy or Mercantile Associations; Name

Section 3. Seven or more persons, residents of the commonwealth, may associate themselves as a corporation, association, society, company or exchange, to conduct within the commonwealth any agricultural, dairy or mercantile business on the co-operative plan. The word ”co-operative” shall form a part of the name of the corporation, and, for the purposes of this […]

Section 3b – Direct-Charge Cooperatives

Section 3B. Seven or more persons, residents of the commonwealth, may associate themselves as a corporation, association, society or company engaging in cooperative purchasing of goods for the personal use and consumption of the stockholders thereof, members of their families and their guests. A corporation organized under this section shall, in pricing its goods, make […]

Section 4 – Capital Stock; Powers; By-Laws; Meetings

Section 4. The capital stock of a co-operative corporation formed under section three, three A or three B shall not be less than one hundred dollars nor more than five million dollars. No stockholder shall own shares of a greater par value than one tenth of the total par value of the capital stock issued […]

Section 5 – Investment of Reserve Fund

Section 5. At any regular meeting, or at any duly called special meeting, at which a majority of its stockholders are present, a corporation formed under section three may authorize the investment if its reserve fund or any part thereof, first, in the building where it is doing business, or, second, in a first mortgage […]

Section 6 – Apportionment of Earnings

Section 6. The directors of every corporation formed under section three or under section three A shall apportion its earnings in the following manner: 1. They shall set aside annually not less than ten per cent of its net profits for a reserve fund until there is accumulated in said reserve fund an amount not […]

Section 7 – Acceptance of Provisions Relating to Agricultural, Dairy or Mercantile Associations; Approval

Section 7. Any co-operative association now organized by law in the commonwealth for any of the purposes mentioned in section three, and qualified so to do, may by a majority vote of the stockholders at a meeting called therefor vote to accept sections three to seven, inclusive, and shall thereupon present to the state secretary […]

Section 8 – Use of Word Co-Operative in Connection With Other Businesses; Penalty

Section 8. Any person, partnership, association or corporation, domestic or foreign, except employee cooperatives organized under chapter one hundred and fifty-seven A and co-operative banks and corporations organized under section ten, transacting business for profit in the commonwealth under any name or title containing the word ”co-operative”, unless the net earnings thereof are distributed in […]

Section 9 – Fee for Filing Articles of Organization

Section 9. The fee for filing the articles of organization required by section three or three A or three B, including the issuing by the state secretary of the certificate of incorporation, shall be determined annually by the commissioner of administration under the provision of section three B of chapter seven.