Corporations, Associations, and Partnerships

Workers' Cooperatives

SECTION 7-6.2-6

§ 7-6.2-6. Members –Membership shares – Fees – Rights and responsibilities. [Effective January 1, 2018.].

(a) The certificate of incorporation or the bylaws shall establish qualifications and the method of acceptance and termination of members. Upon completion of their probationary period, all regular full-time or part-time employees shall be offered membership in the workers' cooperative. Acceptance as a member in a workers' cooperative shall be evidenced by a membership share, which shall be issued for a fee, to be paid in such terms and conditions as are provided in the bylaws.

(b) A workers' cooperative shall issue a class of voting stock designated as "membership shares." Each member shall own only one membership share, and only members may own membership shares.

(c) Membership shares shall be issued for a fee as shall be determined from time to time by the directors. No certificate for a membership share shall be issued until its fee has been paid in full. Each member is entitled to a certificate for his or her membership share upon fulfilling the requirements in the cooperative's articles of incorporation and bylaws.

(d) Members of a workers' cooperative shall have all the rights and responsibilities of stockholders of a corporation organized under the provisions of chapter 1.2 of title 7, except as otherwise provided in this chapter.

History of Section.
(P.L. 2017, ch. 370, § 1; P.L. 2017, ch. 378, § 1.)