NONPROFIT CORPORATION ACT (EXCERPT)
Act 162 of 1982
450.3104 Definitions; M to U.
(1) “Member capital” means the assets which a member must provide by payment, transfer, or allocation of net savings to a cooperative as a condition of admission to or retention of membership and with respect to which the member has rights to dividends, redemption or distributions on dissolution pursuant to this chapter.
(2) “Membership fee” means a nonredeemable fee which a member must pay to a cooperative as a condition of admission to or retention of membership in the cooperative which is not member capital or a fee for goods, services, or facilities.
(3) “Patron” means a person whose economic exchange is a regular part of the business of a cooperative or foreign cooperative, which economic exchange is the same type of regular economic exchange engaged in by any class of members.
(4) “Patronage” means the selling or providing of goods, services, or facilities to, or the buying of goods, services, or facilities from members or other persons, or the providing of labor or services to or by a cooperative.
(5) “Redemption” means any method by which a cooperative exchanges cash or debt instruments for member capital, including, but not limited to, repurchase, redemption, refund, or repayment.
(6) “Referendum” means a method of member voting that utilizes secret ballot and established polling places as provided in the cooperative's bylaws.
(7) “Unincorporated cooperative” means either of the following:
(a) An association of 2 or more persons organized on a cooperative basis which is not a corporation.
(b) An association of 2 or more persons organized under the laws of another state operating on either a cooperative basis or a similar basis provided in another state as the criterion for being a cooperative, which is not a corporation.
History: Add. 1984, Act 209, Eff. Nov. 1, 1985
© 2009 Legislative Council, State of Michigan