§ 54-148. Stock; membership certificates; when issued; voting; liability; limitation on transfer of ownership. - North Carolina Statutes

§54‑148.  Stock; membership certificates; when issued; voting; liability;limitation on transfer of ownership.

(a)        When a member of anassociation established without capital stock has paid his membership fee infull, he shall receive a certificate of membership.

(b)        No associationshall issue stock to a member until it has been fully paid for. The promissorynotes of the members may be accepted by the association as full or partialpayment. The association shall hold the stock as security for the payment ofthe note, but such retention as security shall not affect the members' right tovote.

(c)        Except for debtslawfully contracted between him and the association, no member shall be liablefor the debts of the association to an amount exceeding the sum remainingunpaid on his membership fee or his subscription to the capital stock,including any unpaid balance on any promissory notes given in payment thereof.

(d)        A cooperativeassociation, incorporated under this Subchapter,  may fix or limit in itsbylaws the amount of stock which one member might own in said association.

(e)        No member orstockholder shall be entitled to more than one vote; provided, however, thatany association organized hereunder, all of whose members are otherassociations organized hereunder shall have power to determine by its bylawsthe number of votes to which each member association shall be entitled and toprovide for the appointment or election of delegates to cast such votes and torepresent the member associations at all members' meetings.

(f)         Any associationorganized with stock under this Subchapter may issue preferred stock, with orwithout the right to vote. Such stock may be redeemable or retirable by theassociation on such terms and conditions as may be provided for by the articlesof incorporation and printed on the face of the certificate.

(g)        The bylaws shallprohibit the transfer of the common stock of the association to persons notengaged in the production of agricultural products, and such restrictions mustbe printed upon every certificate of stock subject thereto.

(h)        The association mayat any time, except when the debts of the association exceed fifty percent(50%) of the assets thereof, buy in or purchase its common stock at book valuethereof as conclusively determined by the board of directors, and pay for it incash within one year thereafter. (1921, c. 87, s. 14; C.S., s.5259(u); 1935, c. 436, s. 2; 1955, c. 596; 1963, c. 1168, s. 12.)