Printable Format17-1501. Incorporation; name; cooperative plan defined. Any number of persons not less than twenty, who are citizens of the state of Kansas may associate themselves together as a cooperative corporation for the purpose and to the end of more successfully promoting and conducting any business or industrial pursuit. The title of such corporation shall begin with "the" and end with "association," "company," "corporation," "exchange," "society," or "union." For the purpose of this act the "co-operative plan" shall be construed to mean a business concern that distributes the net profits of its business by: First, the payment of a fixed dividend upon its stock; second, the remainder of its profits are prorated to its several stockholders upon their purchases from or sales to said concern or both such purchases and sales.
History: R.S. 1923, 17-1501; December 27.
Source or Prior Law:
L. 1887, ch. 116, § 1; L. 1913, ch. 137, § 1; L. 1915, ch. 159, § 1; L. 1917, ch. 126, § 1.
Attorney General's Opinions:
Cooperative societies; bylaws and regulations; premiums; certain rebates or other inducements prohibited. 92-150.
CASE ANNOTATIONS
1. Cooperative society bound to make annual statement and pay fees; incorporated cooperative society held "operated for pecuniary profit"; and "doing business for pay." The State, ex rel., v. Sessions, 95 Kan. 272, 279, 147 P. 789. Affirmed: Railway Co. v. Kansas, 245 U.S. 627, 38 S. Ct. 60, 62 L. Ed. 518.
2. Wichita board of trade is affected with the public interest. Farmers Co-operative Comm. Co. v. Wichita Board of Trade, 121 Kan. 348, 246 P. 511.
3. Cooperative grain company may make purchases and sales outside the state. Clark v. Murphy, 142 Kan. 426, 427, 49 P.2d 973.
4. Powers of society discussed and compared with cooperative marketing corporation's powers. State, ex rel., v. Consumers Co-operative Ass'n, 163 Kan. 324, 325, 326, 332, 334, 335, 336, 351, 183 P.2d 423.
5. Plan to convert cooperative society to cooperative marketing association held unjust and inequitable. Hill v. Partridge Co-operative Equity Exchange, 168 Kan. 506, 512, 513, 515, 214 P.2d 316.