§421C-14 One member, one vote. (a) Each member of an association shall have one and only one vote; provided that secondary associations, which are associations solely comprised of other associations or groups organized on a cooperative basis, may allow exceptions to the one vote per member rule, by allocating votes on the basis of the following:
(1) The number of individual members in each organization; or
(2) Size of dollar volume of direct transactions between the member organizations and the secondary association.
(b) Being "organized on a cooperative basis" means being organized such that:
(1) Each member has one vote and only one vote, except as may be altered in the articles or bylaws of a secondary cooperative by provision for voting by member organizations;
(2) The maximum rate at which any return is paid on share or membership capital is limited; and
(3) The allocation or distribution of net savings after making provision for such separate funds as may be required or specially permitted by statute, articles, or bylaws, is made to member patrons or to all patrons, in proportion to their patronage; or is allocated in a manner which benefits the general welfare of all of the members of the association.
(c) No voting agreement or other device to evade the one member, one vote rule shall be enforceable. [L 1982, c 97, pt of §2; am L 1984, c 217, §6]
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