Section 450.3100 – Short Title.
450.3100 Short title. Sec. 1100. This chapter shall be known and may be cited as the “consumer cooperative act”. History: Add. 1984, Act 209, Eff. Nov. 1, 1985
Section 450.3101 – Applicability of Act and Chapter; Amendment of Articles or Bylaws; Exemption.
450.3101 Applicability of act and chapter; amendment of articles or bylaws; exemption. Sec. 1101. (1) Except as otherwise provided in this act or by other law, this act and this chapter apply to: (a) All consumer cooperatives which are organized after the effective date of this amendatory act. (b) All consumer cooperatives which have been […]
Section 450.3102 – Controlling Definitions.
450.3102 Controlling definitions. Sec. 1102. The definitions contained in sections 1103 and 1104 shall control in the interpretation of this chapter, unless the context otherwise requires. History: Add. 1984, Act 209, Eff. Nov. 1, 1985
Section 450.3103 – Definitions; C to F.
450.3103 Definitions; C to F. Sec. 1103. (1) “Consumer” means a natural person who acquires, or commits to acquire in the future from the cooperative primarily for consumption, use, or occupancy by the person or the person’s family, any of the goods, services, or facilities furnished by the cooperative. (2) “Consumer cooperative” means a cooperative […]
Section 450.3104 – Definitions; I to U.
450.3104 Definitions; I to U. Sec. 1104. As used in this chapter: (a) “Insolvent” means being unable to pay debts as they become due in the usual course of a debtor’s business. (b) “Member capital” means the assets that a member must provide by payment, transfer, or allocation of net savings to a cooperative as […]
Section 450.3107 – Inconsistent Provisions Inapplicable to Chapter.
450.3107 Inconsistent provisions inapplicable to chapter. Sec. 1107. To the extent that sections 301(4) and 301(5), 855, and 901 are inconsistent with this chapter, they shall not apply to cooperatives. History: Add. 1984, Act 209, Eff. Nov. 1, 1985 ;– Am. 2014, Act 557, Imd. Eff. Jan. 15, 2015
Section 450.3109 – Requirements of MCL 460.1 Et Seq. Not Modified; Effect of Economic Activity Conducted by Cooperative.
450.3109 Requirements of MCL 460.1 et seq. not modified; effect of economic activity conducted by cooperative. Sec. 1109. (1) This chapter does not modify the requirements of Act No. 3 of the Public Acts of 1939, being sections 460.1 to 460.8 of the Michigan Compiled Laws. (2) The fact that a cooperative conducts economic activity […]
Section 450.3121 – Articles of Incorporation; Requirement.
450.3121 Articles of incorporation; requirement. Sec. 1121. In addition to the requirements of section 202, the articles of incorporation of a cooperative organized under this act shall state whether the cooperative will be financed on a membership fee basis, a member capital basis, or a combination of both. History: Add. 1984, Act 209, Eff. Nov. […]
Section 450.3123 – Use of Term “Cooperative,”“co-Op,”“consumer Cooperative,” or Any Variation Thereof.
450.3123 Use of term “cooperative,”“co-op,”“consumer cooperative,” or any variation thereof. Sec. 1123. (1) The term “cooperative”, “co-op”, or any variation thereof, may only be used in the name of cooperatives organized under or subject to this chapter, corporations organized under or subject to sections 98 to 109 of Act No. 327 of the Public Acts […]
Section 450.3125 – Adoption of Initial Bylaws; Ratification or Amendment; Contents of Bylaws.
450.3125 Adoption of initial bylaws; ratification or amendment; contents of bylaws. Sec. 1125. (1) Notwithstanding section 231, the initial bylaws of a cooperative may be adopted by the incorporators, the board, or the members. If initial bylaws are adopted by the incorporators or the board, at the first meeting of members the bylaws shall be […]
Section 450.3131 – Organization on Nonstock Membership Basis.
450.3131 Organization on nonstock membership basis. Sec. 1131. Notwithstanding section 302, a cooperative organized under this act shall be organized on a nonstock membership basis and shall not be organized on a stock or directorship basis. History: Add. 1984, Act 209, Eff. Nov. 1, 1985
Section 450.3132 – Membership; Notice of Qualifications.
450.3132 Membership; notice of qualifications. Sec. 1132. Subject to section 304(7), membership in a consumer cooperative subject to this act shall be available to all patrons of the cooperative who are consumers. The bylaws may make membership available to other patrons. For any other cooperative, 50% or more of the patronage shall be with members […]
Section 450.3133 – Classification.
450.3133 Classification. Sec. 1133. If a cooperative has classes of members pursuant to section 304, classification shall be based only on 1 or more of the following number of members, number of persons served, type of patronage, level of patronage, or whether or not members are patrons. In a consumer cooperative, classification of consumers by […]
Section 450.3134 – Cooperative Organized on Member Capital Basis, Member Fee Basis, or Basis Combining Member Capital and Membership Fee; Powers.
450.3134 Cooperative organized on member capital basis, member fee basis, or basis combining member capital and membership fee; powers. Sec. 1134. (1) A cooperative which is organized on a member capital basis or on a basis combining member capital and membership fee may provide for any of the following, if such provision is set forth […]
Section 450.3135 – Net Savings; Determination, Allocation, Distribution, and Use; Apportionment of Losses.
450.3135 Net savings; determination, allocation, distribution, and use; apportionment of losses. Sec. 1135. (1) At least once each year, a cooperative shall determine its net savings by deducting from total income: (a) All operating costs and expenses. (b) Reasonable reserves for depreciation and obsolescence of property, doubtful accounts, other valuation or operating reserves, capital investments […]
Section 450.3136 – Certificate; Issuance; Contents; Restrictions on Dividends.
450.3136 Certificate; issuance; contents; restrictions on dividends. Sec. 1136. (1) If a cooperative is to be financed in whole or in part on a member capital basis, each member shall be provided a certificate or certificates setting forth the initial member capital of the member. (2) A certificate issued pursuant to this section shall contain […]
Section 450.3137 – Nonvoting Investment Certificate or Bond.
450.3137 Nonvoting investment certificate or bond. Sec. 1137. Subject to the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818, and the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703, a cooperative may offer to its members or to the general public any form of nonvoting investment certificate or bond that […]
Section 450.3138 – Advising Persons in Writing; Statement on Membership Certificate.
450.3138 Advising persons in writing; statement on membership certificate. Sec. 1138. Prior to accepting a person as a member or any membership fee or member capital, a cooperative shall advise the person in writing of the items in subdivisions (a) to (g). A cooperative shall also conspicuously state on each membership certificate the items in […]
Section 450.3139 – Redemption of Member Capital; Failure to Patronize Cooperative; Notice of Redemption; Failure to Respond and Claim Payment; Failure to Claim Refunds of Patronage Capital, Deposits, and Fees; Failure of Nonmember Patron to Pay in or Accumulate Full Member Capital or Comply With Bylaws.
450.3139 Redemption of member capital; failure to patronize cooperative; notice of redemption; failure to respond and claim payment; failure to claim refunds of patronage capital, deposits, and fees; failure of nonmember patron to pay in or accumulate full member capital or comply with bylaws. Sec. 1139. (1) Unless the articles or bylaws provide that the […]
Section 450.3141 – Meetings; Petitions; Signatures; Quorum.
450.3141 Meetings; petitions; signatures; quorum. Sec. 1141. Regular meetings of members shall be held at a time and place prescribed in the bylaws but not less than annually. A special meeting of members may be called by the board of directors or by written petition of members. A petition shall state the purpose or purposes […]