1. A cooperative may issue the number of interests of each class authorized by its articles. A cooperative may issue fractional interests. Interests may be represented by certificates or by entry on the cooperative’s interest record books.

Terms Used In Iowa Code 501.501

  • Articles: means the cooperative's articles of association. See Iowa Code 501.101
  • Cooperative: means a cooperative association organized under this chapter or converted to this chapter pursuant to section 501. See Iowa Code 501.101
  • Interest: means a voting interest or other interest in a cooperative as described in the cooperative's articles of association. See Iowa Code 501.101
  • Member: means a person who owns a voting interest in a cooperative. See Iowa Code 501.101
  • person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
 2. A member shall not sell or otherwise transfer voting interests to any person. A member may be restricted or limited from selling or otherwise transferring any other class of interests of the cooperative as provided by the cooperative’s articles of association or bylaws or an agreement executed between the cooperative and the member.
 3. A cooperative may acquire its own interests, and interests so acquired constitute authorized but unissued interests.
  Previous section
Next section  
 Chapter 501 Contents