§ 54-158. Cooperative associations may form subsidiaries. - North Carolina Statutes

§54‑158.  Cooperative associations may form subsidiaries.

Nothing in this Subchaptershall prevent an association organizing, forming, operating, owning,controlling, having an interest in, owning stock of, or being a member of anyother corporation (hereinafter referred to as a subsidiary corporation) fromincluding or having included in the charter or bylaws of such subsidiarycorporation provisions for the control or management of said subsidiarycorporation by such association to such extent as shall by votes of the boardof directors of such association, and the majority of the stockholders of suchsubsidiary corporation, be declared to be for the best interests of saidassociation and said subsidiary corporation respectively. Such provisions maybe so included in any such charter or bylaws and may by way of illustration,but not of limitation, include the following:

(1)        Representation ofsaid association on the board of directors or other governing body of saidsubsidiary corporation, upon such terms as may be deemed advisable.

(2)        Ownership by anassociation of an interest or interests in a subsidiary corporation representedby stock of any class thereof, or otherwise, to such extent and upon suchterms, and with such voting power, as may be deemed advisable.

(3)        Participation bysaid association in the profits of such subsidiary corporation to such extentand upon such terms as shall be deemed advisable. (1933, c. 350, s. 1.)