Michigan Compiled Laws 162-1982-11 Chapter 11 (450.3100...450.3192)

• Section 450.3100 Short Title.
  This chapter shall be known and may be cited as the “consumer cooperative act”. History: Add. 1984, Act 209, Eff. Nov. 1, 1985
• Section 450.3101 Applicability Of Act And Chapter; Amendment Of Articles Or Bylaws; Exemption.
  (1) Except as otherwise provided in this act or by other law, this act and this chapter apply to: (a) All consumer cooperatives which...
• Section 450.3102 Controlling Definitions.
  The definitions contained in sections 1103 and 1104 shall control in the interpretation of this chapter, unless the context otherwise requires. History: Add. 1984,...
• Section 450.3103 Definitions; C To F.
  (1) "Consumer" means a natural person who acquires, or commits to acquire in the future from the cooperative primarily for consumption, use, or occupancy...
• Section 450.3104 Definitions; I To U.
  As used in this chapter: (a) "Insolvent" means being unable to pay debts as they become due in the usual course of a debtor's...
• Section 450.3107 Inconsistent Provisions Inapplicable To Chapter.
  To the extent that sections 301(4) and 301(5), 855, and 901 are inconsistent with this chapter, they shall not apply to cooperatives. History: Add....
• Section 450.3109 Requirements Of Mcl 460.1 et Seq. Not Modified; Effect Of Economic Activity Conducted By Cooperative.
  (1) This chapter does not modify the requirements of Act No. 3 of the Public Acts of 1939, being sections 460.1 to 460.8 of...
• Section 450.3121 Articles Of Incorporation; Requirement.
  In addition to the requirements of section 202, the articles of incorporation of a cooperative organized under this act shall state whether the cooperative...
• Section 450.3123 Use Of Term “cooperative,”“co-op,”“consumer Cooperative,” Or Any Variation Thereof.
  (1) The term “cooperative”, “co-op”, or any variation thereof, may only be used in the name of cooperatives organized under or subject to this...
• Section 450.3125 Adoption Of Initial Bylaws; Ratification Or Amendment; Contents Of Bylaws.
  (1) Notwithstanding section 231, the initial bylaws of a cooperative may be adopted by the incorporators, the board, or the members. If initial bylaws...
• Section 450.3131 Organization On Nonstock Membership Basis.
  Notwithstanding section 302, a cooperative organized under this act shall be organized on a nonstock membership basis and shall not be organized on a...
• Section 450.3132 Membership; Notice Of Qualifications.
  Subject to section 304(7), membership in a consumer cooperative subject to this act shall be available to all patrons of the cooperative who are...
• Section 450.3133 Classification.
  If a cooperative has classes of members pursuant to section 304, classification shall be based only on 1 or more of the following number...
• Section 450.3134 Cooperative Organized On Member Capital Basis, Member Fee Basis, Or Basis Combining Member Capital And Membership Fee; Powers.
  (1) A cooperative which is organized on a member capital basis or on a basis combining member capital and membership fee may provide for...
• Section 450.3135 Net Savings; Determination, Allocation, Distribution, And Use; Apportionment Of Losses.
  (1) At least once each year, a cooperative shall determine its net savings by deducting from total income: (a) All operating costs and expenses....
• Section 450.3136 Certificate; Issuance; Contents; Restrictions On Dividends.
  (1) If a cooperative is to be financed in whole or in part on a member capital basis, each member shall be provided a...
• Section 450.3137 Nonvoting Investment Certificate Or Bond.
  Subject to the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818, and the uniform securities act (2002), 2008 PA 551, MCL 451.2101...
• Section 450.3138 Advising Persons In Writing; Statement On Membership Certificate.
  Prior to accepting a person as a member or any membership fee or member capital, a cooperative shall advise the person in writing of...
• Section 450.3139 Redemption Of Member Capital; Failure To Patronize Cooperative; Notice Of Redemption; Failure To Respond And Claim Payment; Failure To Claim Refunds Of Patronage Capital, Deposits, And Fees; Failure Of Nonmember Patron To Pay In Or Accumulate Full Member Capital Or Comply With Bylaws.
  (1) Unless the articles or bylaws provide that the member capital is not redeemable, upon termination of a membership issued on a member capital...
• Section 450.3141 Meetings; Petitions; Signatures; Quorum.
  Regular meetings of members shall be held at a time and place prescribed in the bylaws but not less than annually. A special meeting...
• Section 450.3143 Alternative Notice Of Regular Meeting.
  Instead of the notice required in section 404, written notice of the time, place, and purposes of a regular meeting of members may be...
• Section 450.3144 Proxies; Voting By Mail Ballot, Referendum, Or Electronic Transmission.
  (1) Notwithstanding section 421, there shall be no proxies unless the articles of incorporation or bylaws authorize use of proxies. If the articles of...
• Section 450.3145 Amendments; Affirmative Vote Of Majority.
  Notwithstanding section 611(4), 703a(2)(d), 753(4), or 804(6), unless the articles of incorporation provide for a higher vote for passage, amendment of the articles of...
• Section 450.3146 Effective Date Of Adopted Action; Confirmation Vote; Filing With Administrator.
  (1) An action subject to the vote requirement of section 1145 shall not take effect for 60 days from the date of adoption and...
• Section 450.3147 Dispute Resolution Body.
  A cooperative may authorize in its articles or bylaws the establishment of a neutral dispute resolution body. The dispute resolution body shall attempt to...
• Section 450.3148 Purchase Or Sale Under Execution, In Course Of Bankruptcy, Or By Legal Process Or Operation Of Law; Pledge Of Certificate; Assignment Of Proprietary Lease Or Other Agreement.
  (1) The purchase or sale of any member capital or privileges in a cooperative made under execution, or in the course of bankruptcy proceedings,...
• Section 450.3149 Books For Recording Operations; Annual Report, Balance Sheet, And Income Statement; Certified Report Of Condition; Copies Of Reports; Mailings At Request And Expense Of Member; Notice Of Member's Desire To Be Contacted By Other Members Regarding Proposal.
  (1) A cooperative shall keep a set of books for recording its operations. A written report, including a statement of the amount of its...
• Section 450.3151 Initial Board Of Directors; Membership; Term.
  Notwithstanding section 505, the initial board of directors of a cooperative shall consist of at least 5 persons. The term of office of directors...
• Section 450.3152 Board Of Directors; Election Or Appointment Other Than By Vote Of Membership.
  Notwithstanding section 505, the bylaws of a cooperative may provide for 1/3 or less of the board of directors to be elected or appointed...
• Section 450.3153 Affiliation With Another Organization; Section Inapplicable To Allocations Of Net Savings.
  A vote of the membership shall be required to affiliate with another organization involving the investment of more than 30% of the assets of...
• Section 450.3161 Amendment To Articles Of Incorporation; Calling Special Meeting; Consideration Of Proposed Amendment.
  An amendment to the articles of incorporation may be proposed by the board, by 10% or more of the members, or by some smaller...
• Section 450.3162 Distribution Of Assets Generally.
  In the event of an amendment to the articles of incorporation or bylaws, merger, or disposition of substantially all of the assets of a...
• Section 450.3183 Distribution Of Assets Upon Dissolution; Distribution Of Assets Held For Charitable Or Similar Purpose; Redemption Of Investment Certificates.
  (1) Notwithstanding section 855, upon dissolution, the assets of a cooperative shall be distributed in the following manner and order: (a) By paying or...
• Section 450.3191 Foreign Cooperative.
  A foreign cooperative shall be entitled to conduct its affairs in this state upon complying with the provisions of chapter 10 and, if a...
• Section 450.3192 Election By Corporation To Accept Act And Chapter; Procedure; Effect Of Filing Certificate Of Election.
  (1) Any corporation may elect to accept this act and this chapter as follows: (a) The board of directors shall adopt a resolution recommending...

Last modified: October 10, 2016