6 BULLETIIs' 1095, U. S. DEPAETMEXT OP AGRICULTUEE. 



the requirements of the law under which the organization is to be 

 incorporated. Many States have one or more special laws providing 

 for the incorporation of cooperative associations, and it is usually 

 advisable to incorporate under a cooperative law wherever prac- 

 ticable. 



Laws designed for noncooperative business corporations in many 

 cases are not best suited to cooperative organizations, as such laws 

 generally grant each share a vote and provide for di-vadends on 

 capital stock. Equal voting rights and privileges in cooperative 

 organizations are important and should be adhered to very closely 

 in forming such organizations. 



The exact procedure to follow in incorporating an organization 

 depends upon the provisions of the State law under which the 

 organization is to be incorporated; consequently no general plan 

 covering all details can be given. Legal counsel should be employed 

 in obtaining the necessary legal information and in preparing the 

 papers for incorporating the organization. 



The temporary board of directors may serve as incorporators, or 

 a committee may be selected for this purpose. 



BY-LAWS OF THE ORGANIZATION. 



If by-laws have been approved by the milk producers at the gen- 

 eral meeting they should be adopted after the mcorporation has been 

 completed. The organization then may undertake the objects for 

 which it was establishecl. The by-laws of a cooperative organiza- 

 tion should clearly define the purposes for which it is organized and 

 specifically provide for the management, financing, and conduct of 

 its business. Local conditions and plan of financing and operating 

 the organization should be taken into consideration in preparing the 

 by-laws, in order that they may provide for the needs of the organi- 

 zation. 



A suggested form of by-laws which may serve as a guide in the 

 preparation of by-laws suited to the needs of cooperative milk-pro- 

 ducers' organizations is given in the Appendix. Changes necessary 

 to adapt them to local conditions and the requirements of State law 

 should be made. 



OBTAINING A SUITABLE BUILDING. 



One of the first questions to be considered by an association is 

 whether to erect a new plant or to rent a building temporarily until 

 such time as a new building can be erected. Sometimes, when the 

 amount of available capital is limited, it may be well to rent a build- 

 ing, if a suitable one can be found, until the capital necessary for the 

 new building can be raised. One of the important considerations, of 



