56-231.30 - Rights and liabilities of members. - Virginia Statutes

§ 56-231.30. Rights and liabilities of members.

A. A cooperative may have one or more classes of members. If the cooperativehas more than one class of members, the designation of each class and thequalifications and rights of the members of each class shall be set forth inthe bylaws of the cooperative.

B. A cooperative shall issue to its members certificates of membership andeach member shall be entitled to only one vote at the meetings of the membersof the cooperative. The liability of each member shall be limited to theunpaid portion of his membership fee or subscription to capital stock, andany unpaid bills for utility services or other services, commodities ormerchandise purchased from the cooperative, provided that nothing in thissection shall be construed to limit the exposure of any unrefunded patronagecapital to the lawful creditors of a cooperative. The equity of members of anonstock cooperative shall be set by the board in accordance with cooperativeprinciples. A cooperative shall be operated on a not-for-profit basis, withthe exception of for-profit affiliates, for the mutual benefit of themembers. The bylaws of a cooperative or its contract with the members shallcontain such provisions relative to the disposition of margins as may benecessary and appropriate to establish and maintain its nonprofit andcooperative character.

(1999, c. 874; 2000, cc. 944, 964, 989, 999.)