Membership — Purposes — Powers

  1. Law
  2. Arkansas Code
  3. Business and Commercial Law
  4. Corporations and Associations
  5. Cooperative Associations
  6. General Provisions
  7. Membership — Purposes — Powers

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  1. (a) Any number of persons, corporations, or entities may associate themselves together as a cooperative corporation for any one (1) or more of the following purposes under the cooperative plan of the cooperative corporation:

    1. (1) Conducting an agricultural, dairy, mercantile, mining, manufacturing, mechanical, marketing, warehousing, transportation, construction, building, or property management business;

    2. (2) Conducting the business of the cooperative corporation; or

    3. (3) Accomplishing a purpose of the cooperative corporation.

  2. (b) A cooperative corporation may:

    1. (1) Buy, sell, or deal in products:

      1. (A) Produced or owned by the following:

        1. (i) The cooperative corporation;

        2. (ii) The individual members or patrons of the cooperative corporation;

        3. (iii) Another cooperative corporation;

        4. (iv) The individual members or patrons of another cooperative corporation; and

      2. (B) Available in the open market;

    2. (2) Negotiate the price at which the products of the cooperative corporation may be sold;

    3. (3) Enter into a contract between the cooperative corporation and the individual members and patrons of the cooperative corporation or on behalf of the cooperative corporation or the individual members and patrons of the cooperative corporation;

    4. (4) Purchase, hold, lease, mortgage, encumber, sell, exchange, and convey real and personal property;

    5. (5) Erect buildings, structures, and other facilities on:

      1. (A) Property owned or leased by the cooperative corporation; and

      2. (B) A right-of-way legally acquired by the cooperative corporation;

    6. (6) Issue bonds and other evidence of indebtedness and borrow money to finance the business of the cooperative corporation;

    7. (7) Make an advance to the individual members and patrons of the cooperative corporation on products delivered by the individual members and patrons to the cooperative corporation;

    8. (8) Loan money to an individual member of the cooperative corporation or a corporation or association from which the cooperative corporation is constituted, with security that the cooperative corporation considers sufficient;

    9. (9) Purchase, acquire, hold, or dispose of stock of another association or corporation and assume all rights, interests, privileges, responsibilities, and obligations arising out of the ownership of the stock;

    10. (10) Purchase, own, and hold shares of capital stock, memberships, interests in nonstock capital, and evidences of indebtedness of a corporation if the purchase, ownership, or holding of the shares of capital stock, memberships, interests in nonstock capital, and evidences of indebtedness of the corporation is necessary or incidental to accomplishing a purpose stated in the articles of incorporation of the cooperative corporation;

    11. (11) Exercise fiduciary powers in relation to the members, cooperatives, or associations from which the cooperative corporation is constituted;

    12. (12) Take, receive, and hold real and personal property, including without limitation the principal and interest of money or other funds and rights in a contract, in trust for any purpose not inconsistent with the purposes of the cooperative corporation as determined by the articles of incorporation of the cooperative corporation; and

    13. (13) Exercise fiduciary powers in relation to taking, receiving, and holding real and personal property.


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