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THE RANCH
VOL. XXXIII. No. 8.
THE NEW CO-OPERATION LAW
ONE OF THE MOST IMPORTANT LAWS PASSED BY THE LATE LEGISLATURE
One of the most important laws
passed by the state legislature affect
ing the citizens of Washington was
that of House Bill No. 114, providing
for the formation and management of
co-operative societies. We are pub
lishing the law in full so that people
can take advantage of its provisions
in forming co-operative societies such
as creameries, selling agencies, fruit
growers' associations, etc.
CHAPTER 19.
(H. B. No. 114.)
An Act providing for the formation
and carrying on of co-operative as
sociations and providing for the
[ rights, powers, liabilities and duties
1 of the same.
Be it enacted by the Legislature of
the State of Washington:
1. Co-operative Associa
tions -Who May Organize -Purposes.
Any number of persons, not less
than five, may associate themselves
together as a co-operative association,
society, company or exchange for the
transaction of any lawful business on
the co operative plan. For the pur
poses of this act the words "associa
tion," "company," "exchange,"
"society" or "union* shall be con
strued the same.
Sec. 2. Articles—Contents.
Every association formed under
this act shall prepare articles of as
sociation in writing, which shall set
forth:
1. The name of the association.
2. The purpose tor which it was
formed.
.'{. Its principal place of business.
4. The term for which it is to exist
which shall not exceed 50 years.
3KENT and SEATTLE WASH., APRIL 15, i 9*-
5. The amount of capital stock,
the number of shares and the par
value of each share.
Sec. 3. Articles—Verification—Fil
ing—When Legally Organized.
The original articles of associations
organized under this act or a true
copy thereof verified to be such by
the affidavits of two of the signers
thereof, shall be filed with the secre
tary of state. Whenever a certified
copy of the same accompanied by a
certificate of the secretary of state
showing that the same has been filed
in his office, is tiled with the county
auditor of the county in which is
located the principal place of business
of said associations, the said aesocia
WHITE RIVER VALLEY DAIRY HERD, WESTERN WASHINGTON.
Herd and Farm of A. Zeeuw, Thomas, Wash.
tion shall be deemed to be legally
organized.
Sec. 4. Filing Pees.
For filing articles of association or
ganized under this act there shall be
paid to the secretary of state the sum
of twenty-live dollars and for the til
ing of an amendment of such articles
there shall be paid the sum of ten
dollars. For recording such articles
of association or an amendment there
to, the county autior shall charge the
sum of fifteen cents for each 100 words
thereof, and fifteen cents for filing
and indexing the same.
Sec. 5. Trustees—Election—Duties
—Election of Officers.
Every such assocition shall be man
aged by a board of not less than three
trustees. The trustees shall be elect
ed by and from the stockholders of
the association at such time and for
such term of office as the by-laws may
j prescribe, and shall hold office during
| the term for which they were elected
and until their successors are elected
and qualified; but a majority of the
stockholders shall have the power at
any regular or special meeting, legally
called for that purpose to remove any
trustee or officer for cause, and fill
the vacancy. The officers of every
such association shall be a president,
one or more vice-presidents, a secre
tary and a treasurer who shall be
elected annually by the trustees.
Each of said officers must be a member
of the association. All elections shall
be by ballot.
Sec. 6. Amendments -How Adopt
ed—Recording.
The articles of association may be
amended by a majority vote of the
stockholders at any regular stock
holders' meeting or at any special
stockholders meeting called for that
purpose, on twenty days' written
notice being given to the stockhold
ers. Said power to amend shall in
clude the power to increase Of dim
inish the amount of capital stock and
the number of shares: Provided, The
amount of the capital stock shall not
be diminished below the amount of
tue paid up capital stock at the time
such amendment is adopted. Within
thirty days after the adoption of an
amendment to its arlicles of associa
tion, the association shnll cause a
copy of such amendment adopted to
be recorded in the otlice of ihe secre
tary of state and of the county audi
tor of the county where its piincipal
place of business is located.
Sec. 7. Business Authorized to be
Conduoted—Lawful Business Denned.
An association created under this
act, being for mutual welfare, the
50c Per Year; 5c theJjßppy^
words "lawful business" shall extend
to every kind of lawful effort for busi
ness, agricultural, dairy, mercantile,
mining, manufacturing or mechanical
business, on the co-operative plan.
Sec. 8. Stock—lssue —Limit —Vote.
No stockholder in any such associa
tion shall own more than one-flfth of
the stock of the association, except
as hereinafter provided. No stock
holder at any meeting shall be entitled
to more than one vote.
Sec. 9. Subscription of Stock in
Other Associations.
At auy regular meeting or any
regularly called special meeting at
which at least a majority of all the
stockholders shall be present, or
represented, an association organized
under this act may by a majority vote
of the stockholders present or repre
sent d, subscribe for shares and in
vest its reserve fund or any part
thereof in the capital slick of any
other co-operative association.
Sec. 10. Purchasing Business of
Otber Associations- Payment - Stock
Issued.
Whenevor au associatiou organized
under this act shall pmchase any
stock of another association or the in
terest or any part thereof of any per
son or pei sons, firm or partnership
engaged in any lawful business as de
linod In Section 7 of this act, it may
pay for the same in while or in part
by issuing to the selling association
or person, firm or partnership, shares
of its capital stock to au amount which
at par value, would equal the fair
market value of the stock or interest
so purchased and in such case the
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