Rhode Island General Laws 7-8-22. Recall of shares
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The bylaws may give the directors the power to use the reserve funds to recall, at par value, the holdings of any member in excess of the amount requisite for membership. The bylaws may also provide that if any member has failed to patronize the association during a period of time specified in the bylaws, the directors may use reserve funds to recall all of his or her holdings, and he or she at that time ceases to be a member of the association.
History of Section.
P.L. 1947, ch. 1976, § 19; G.L. 1956, § 7-8-22.
Terms Used In Rhode Island General Laws 7-8-22
- Association: means any corporation formed under this chapter. See Rhode Island General Laws 7-8-2
- Member: means not only a member in a nonshare association but also a member in a share association. See Rhode Island General Laws 7-8-2
- Membership: means , in the case of a share association, the status whereby a shareholder becomes entitled to all the rights, including, but not limited to, the right of voting and of receiving dividends on shares, and apportionment of net savings in cash, which accrue to him or her under the articles of association and bylaws upon the acquisition of the minimum number of shares of stock required by the articles of association for membership and upon fulfillment of the eligibility requirements of the association. See Rhode Island General Laws 7-8-2