185.09
185.09
Promotion expense; limitation. No cooperative funds may be used, nor any stock issued, in payment of any promotion expenses in excess of 5 percent of the paid-up capital stock or membership fees. This section does not apply to a cooperative association organized under s.
185.981.
185.09 History
History: 2009 a. 165,
177;
2011 a. 258.
185.11(1)(1)
All cooperatives shall be organized on a membership basis with no capital stock, or shall be organized on a membership basis with capital stock.
185.11(2)
(2) A cooperative may have one or more classes of members. The designation, qualifications, requirements, method of acceptance, and incidents of membership of each class shall be set forth in the bylaws. Any person, including a partnership, incorporated or unincorporated association, limited liability company, corporation, or body politic, may become a member in accordance with the bylaws.
185.11(3)
(3) No member may transfer his or her membership except as permitted in the bylaws.
185.11(4)
(4) The bylaws may provide for termination of membership and the conditions and terms thereof.
185.11 History
History: 1985 a. 30 ss.
12,
42;
1993 a. 112,
482.
185.12(1)(1)
Except as permitted in this section, s.
185.52,
185.61 or
185.63, no person other than a member may vote at any member meeting. A person who has not fully paid for a membership may not vote except as expressly permitted in the bylaws. If the cooperative permits 2 or more persons to hold one membership, the bylaws may provide how such member vote is to be cast.
185.12(2)
(2) At any member meeting, each member entitled to vote shall have one vote, except that the articles may permit either or both:
185.12(2)(a)
(a) A member association to cast additional votes not exceeding a number equal to its membership.
185.12(2)(b)
(b) A cooperative whose member-patrons include other associations to base voting in whole or in part on a patronage basis.
185.12(3)
(3) Voting by proxy shall not be allowed in any cooperative.
185.12(4)(a)(a) The bylaws may provide for representation of members by delegates apportioned territorially or by other districts or units. The bylaws shall specify either that a delegate may cast only one vote or that a delegate may cast one vote for each member represented by the delegate.
185.12(4)(b)
(b) The procedures set forth in this chapter for voting by members apply to voting by delegates, except as provided in all of the following:
185.12(4)(b)1.
1. If any delegate who may cast only one vote is permitted to vote on a matter, only delegates may vote on that matter.
185.12(4)(b)2.
2. If delegates may cast only one vote, in calculating the required proportion of votes on a matter, the number of delegate votes shall be used, but the number of delegates required for a quorum shall be as specified in the bylaws.
185.12(4)(b)3.
3. If the bylaws provide for representation of members by delegates who may cast one vote for each member represented by the delegate, in calculating the required proportion of votes on a matter and the number of delegates required for a quorum, the number of members represented by each delegate shall be used.
185.12(5)(a)(a) Members entitled to vote on a motion but absent from the meeting at which the vote is taken may vote only as follows:
185.12(5)(a)1.
1. If a cooperative provides ballots for the vote on the motion to the members together with notice of the meeting at which the vote will be taken and exact copies of the motion and any resolution to which it pertains, an absent member may vote on the motion by submitting a signed ballot. If a signed ballot has been submitted on a motion under this subdivision, neither the motion nor any resolution to which it pertains may be amended.
185.12(5)(a)2.
2. If a cooperative makes available ballots for the vote on the motion together with exact copies of the motion and any resolution to which it pertains to any member entitled to vote on the motion, but does not comply fully with the requirements of subd.
1., an absent member may vote on the motion by submitting a signed ballot. However, the motion and any resolution to which it pertains may be amended at the meeting, and, if the motion or resolution is amended, the ballot is void. The ballot may not be counted on any motion to amend or adopt as amended the motion or resolution.
185.12(5)(a)3.a.
a. The cooperative permits absent members to vote on the motion under subd.
1. or
2. 185.12(5)(a)3.c.
c. The cooperative is able to authenticate that it is a member who is casting a vote.
185.12(5)(a)3.d.
d. The cooperative gives a vote cast under this subdivision the same effect as it would have if it was cast under subd.
1. or
2., whichever is applicable.
185.12(5)(b)
(b) The bylaws may provide for voting on the election or removal of directors by signed ballots or by electronic means. Signed ballots may not be used for this purpose unless the bylaws authorize and prescribe the procedure for their use. Voting by electronic means may not be used unless all of the following apply:
185.12(5)(b)1.
1. The bylaws provide for electronic voting on the election or removal of directors.
185.12(5)(b)2.
2. The cooperative is able to authenticate that it is a member who is casting a vote.
185.12(5)(b)3.
3. The cooperative gives a vote cast by electronic means the same effect as a vote cast by signed ballot or by a member present at a meeting.
185.12(5m)(a)(a) In this subsection, “cooperative holding company” means a cooperative that owns or controls subsidiaries operating on a cooperative basis as the primary part of their business and activities.
185.12(5m)(b)
(b) Notwithstanding sub.
(2), a cooperative holding company and its cooperative subsidiaries may, in its articles or bylaws, permit members to base voting power in whole or in part on members' current or recent patronage activity, or on members' patronage equity in the cooperative, or on a combination of both.
185.12(5m)(c)
(c) If the articles or bylaws provide for voting power as described in par.
(b), whenever this chapter requires an action to be approved by a majority vote of members or by a vote of a greater proportion of members, approval of the action is by, respectively, a majority of the member votes cast or such greater proportion of the member votes cast.
185.12(6)
(6) The bylaws may set forth provisions, not inconsistent with this chapter, relating to the methods and procedures for voting.
185.13
185.13
Member meetings. 185.13(1)(1)
Unless the bylaws provide otherwise, member meetings shall be held at the principal office or such other place as the board may determine.
185.13(2)
(2) An annual member meeting shall be held at the time fixed in or pursuant to the bylaws. In the absence of a bylaw provision, such meeting shall be held within 6 months after the close of the fiscal year at the call of the president or board.
185.13(3)
(3) Special member meetings may be called by the president, board, or members having one-fifth of the votes entitled to be cast at such meeting.
185.13(4)
(4) Written notice, stating the place, day and hour, and in case of a special member meeting the purposes for which the meeting is called, shall be given not less than 7 nor more than 30 days before the meeting at the direction of the person calling the meeting. Notice need be given only to members entitled to vote. Notice shall be given to members having limited voting rights if they have or may have the right to vote at the meeting.
185.13(5)
(5) At any meeting at which members are to be represented by delegates, notice to such members may be given by notifying such delegates and their alternates. Notice may consist of a notice to all members or may be in the form of an announcement at the meeting at which such delegates or alternates were elected.
185.13 History
History: 1985 a. 30.
185.14(1)(1)
A quorum at a member meeting shall be 10 percent of the first 100 members plus 5 percent of additional members.
185.14(2)
(2) Unless the bylaws fix a larger number of members to constitute a quorum and except as provided in the bylaws in accordance with s.
185.12 (4) (b) 2., a quorum shall never be more than 50 members nor less than 5 members or a majority of all members, whichever is smaller. Members represented by signed ballots may be counted in computing a quorum only on those motions for which the signed ballots were submitted.
185.14 History
History: 1985 a. 30.
185.15
185.15
Notice to members, stockholders or other persons; waiver. 185.15(1)(1)
Whenever notice is required by this chapter to be given to any person, the notice shall be given either personally or by mail. If mailed, the notice is given when it is deposited or a newsletter or other publication of a cooperative or of an affiliated organization which includes the notice is deposited in the United States mail, with postage prepaid thereon, addressed to such person at his or her address as it appears on the records of the cooperative.
185.15(2)
(2) A signed waiver is equivalent to personal notice to the person so signing. The waiver may be signed at any time.
185.15 History
History: 1985 a. 30.
185.21
185.21
Stock; authorization, issuance, control, use, rights. 185.21(1)(1)
A cooperative may be organized with or without capital stock.
185.21(2)
(2) A cooperative organized with capital stock may issue the amount of stock stated in its articles. Such stock may be divided into 2 or more classes with such designations, preferences, limitations, and relative rights as shall be stated in the articles, except that:
185.21(2)(b)
(b) Stock without par value shall not be authorized or issued;
185.21(3)(a)(a) The articles may require that members own one or more shares of membership stock. Such stock shall be issued or transferred only to a person eligible to become a member, and only when such person satisfies other requisites for membership.
185.21(3)(b)
(b) Unless restricted by the articles, stock other than membership stock may be issued or transferred to any person.
185.21(4)
(4) Each certificate for stock shall bear the manual or facsimile signature of a principal officer and shall state:
185.21(4)(a)
(a) The name of the cooperative, the number, par value and class of the shares represented by the certificate, and whether or not it is membership stock.
185.21(4)(b)
(b) Any restrictions on the issuance or transfer of such stock, including those provided in sub.
(3) (a);
185.21(4)(c)
(c) If more than one class of stock is authorized, the designation of the several classes, and their respective preferences, limitations and relative rights. In lieu of the full statement, this information may be given in summary form, or the certificate may state that the cooperative will, upon request, furnish the information required by this subsection.
185.21(5)
(5) No stock certificate may be issued except upon payment of the par value of the stock it represents. Payment for stock may be in cash or other property. If in other property, the value thereof shall be determined by the board and such determination, if made in good faith, shall be conclusive.
185.21(6)
(6) Unless the articles provide otherwise, a cooperative may acquire, recall, exchange, redeem, and reissue its own stock. Provisions in the articles and on the stock certificate may reserve to the cooperative a prior right to acquire any stock offered for sale, or a right to recall the stock of any stockholder, or both of said rights. The consideration paid for stock recalled by the cooperative shall be its par value and accrued unpaid dividends, provided that if the book value of such stock is less than the par value, the consideration shall be such book value. The cooperative may set off obligations of the stockholder to it. If the remaining assets would be less than the aggregate amount payable to creditors and persons holding stock with preferential rights upon liquidation, no stock shall be acquired, recalled, exchanged or redeemed for a consideration other than stock or certificates of equity interest of equal or subordinate rank.
185.21(7)
(7) When stock is acquired, recalled, exchanged, or redeemed by the cooperative, such stock is restored to the status of authorized but unissued stock.
185.21(8)
(8) Stockholders as such have no preemptive right to purchase additional stock.
185.21 History
History: 1975 c. 34;
1985 a. 30 ss.
18,
19,
42,
44;
2017 a. 76.
185.22
185.22
Subscriptions for stock; liability therefor. 185.22(1)(1)
A subscription for stock of a cooperative is irrevocable for 6 months unless otherwise provided by the subscription agreement, or unless all subscribers consent to the revocation.
185.22(2)
(2) Except as provided in s.
185.37, a stockholder or subscriber is under no obligation to any person with respect to the stockholder's or subscriber's stock or subscription other than the obligation to pay to the cooperative the full consideration for which such stock was to be issued.
185.22 History
History: 1985 a. 30 s.
42;
1993 a. 482.
185.23
185.23
Missing securities or records. 185.23(1)(1)
When a security issued by a cooperative, which is not a “security" as defined in s.
408.102, is missing, the cooperative shall issue a duplicate security if the owner so requests and furnishes an indemnity acceptable to the cooperative.
185.23(2)
(2) When records showing ownership of securities of apportionment of equity interest in the assets are missing and the information therein contained is necessary to a proposed redemption of the interest, the cooperative may give notice and redeem as follows:
185.23(2)(a)
(a) The cooperative shall set aside an amount equal to the value of the interests to be redeemed.
185.23(2)(b)
(b) The cooperative shall give notice of such redemption to all owners of interests of which the cooperative has knowledge.
185.23(2)(c)
(c) If there are interests, the ownership of which is unknown to the cooperative, it shall publish notice of the redemption at least once a month for 4 months in a publication circulated among members of cooperatives in the area, and also publish a class 3 notice, under ch.
985.
185.23 History
History: 1985 a. 30 s.
42.
185.24
185.24
Liability of cooperative for wrongful transfers of its securities. 185.24(1)(1)
A cooperative is not liable for acting upon wrongful transfers of its securities which are not “securities" as defined in s.
408.102, unless it has notice that the certificate was not transferred by a proper person or has notice that the transfer was wrongful.
185.24(2)(a)
(a) “Proper person" means the registered owner or last prior transferee, whether or not described as fiduciary for another, or his or her authorized agent, legal representative or successor to his or her interest by operation of law.
185.24(2)(b)
(b) “Wrongful transfer" means a transfer which is in excess of the authorization or capacity of the transferor, or which is made in breach of the transferor's fiduciary duty.
185.24(2)(c)
(c) “Transfer" includes a redemption or recall of stock.
