Michigan Laws 450.3134 – Cooperative organized on member capital basis, member fee basis, or basis combining member capital and membership fee; powers
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(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 in the articles or bylaws:
(a) A maximum member capital to be held by any 1 member.
Terms Used In Michigan Laws 450.3134
- Member capital: means the assets that a member must provide by payment, transfer, or allocation of net savings to a cooperative as a condition of admission to or retention of membership and with respect to which the member has rights to dividends, redemption, or distributions on dissolution under this chapter. See Michigan Laws 450.3104
- Membership fee: means a nonredeemable fee that a member must pay to a cooperative as a condition of admission to or retention of membership in the cooperative that is not member capital or a fee for goods, services, or facilities. See Michigan Laws 450.3104
(b) Transfer of member capital pursuant to section 304(6).
(c) Mandatory contribution or contributions of member capital as a condition or conditions of admission to or retention of membership, including but not limited to initial capital contributions, surcharges, and distributions of net savings pursuant to section 1135.
(d) A dividend on membership capital, not to exceed 8% per year.
(e) Special assessments on members.
(2) A cooperative which is organized on a membership fee basis or on a basis combining member capital and membership fee may provide for either or both of the following as a condition or conditions of admission to or retention of membership in the cooperative, if such a provision is set forth in its articles or bylaws:
(a) The charging of a nonredeemable initial or periodic membership fee or fees.
(b) Nonredeemable special assessments on members.