Capital stock--Classes of stock.

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47-16-21. Capital stock--Classes of stock.

A cooperative organized with capital stock may issue the amount of stock stated in its articles. Such stock may be divided into two or more classes with such designations, preferences, limitations, and relative rights as shall be stated in the articles, except that:

(1)Stock as such has no voting power;

(2)Stock without par value shall not be authorized or issued;

(3)The rate of dividends upon stock shall not exceed eight percent of its par value for any year, and dividends may not be cumulative.

Source: SDC 1939, §11.1118 (1) as enacted by SL 1965, ch 23, §1.


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