COOPERATIVE MILK-DISTRIBUTING PLANTS. 43 



Sec. 2. The books and records of the bus-iness of the association shall be aud- 

 ited (monthly) by a competent auditor selected by the board of directors. A 

 complete annual audit shall be made by a competent accountant previous to 

 the date of each annual meeting, at which meeting the report of the auditor 

 shall be presented in full. Special audits shall be made upon order of the board 

 of directors or upon a majority vote of the members present at any regular 

 or called meeting. 



Article XYI. — Amendments. 



Section. 1. These by laws may be amended at any meeting by two-thirds vote 

 of the members present in person or voting by registered mail, provided that 

 notice of such proposed amendment is included in the call for said meeting. 



BY-LAWS FOR NONSTOCK ORGANIZATIONS. 



While most of the cooperative milk plant organizations have been 

 formed with capital stock, the nonstock plan has been adopted in some 

 instances. The following articles are suggested for substitution for 

 the corresponding articles in the preceding by-laws in adapting them 

 to organizations formed without capital stock. 



Aeticle III — 2Iembers7i Ip. 



Section 1. Any bona fide producer of dairy products in the territory served by 

 this association may become a member of the association by agreeing to com- 

 ply with the requirements of these by-laws. 



Sec. 2. Upon the payment of the membership fee, the association shall issue 

 a certificate of membership to the applicant. Such certificate of membership 

 shall not be transferable. The willful violation of the by-laws of this associa- 

 tion or of the contract or contracts entered into by the association with any 

 member shall constitute a sufficient cause for expulsion of such member. 



Sec. 3. No member shall be expelled from the association except by a two- 

 thirds vote of the members present at any annual or special meeting following 

 the miiiling of a notice to each member in accordance with these by-laws, speci- 

 fying that the matter of the expulsion of such member is to be voted on at the 

 meeting. The member shall have charges preferred against him 10 days in ad- 

 vance of such meeting and shaU have an opportunity to be heard in person, by 

 counsel, and by witnesses. After a hearing, if the board of directors determines 

 that a member has ceased to be a bona fide producer of dairy products, his mem 

 bership shall be terminated and his membership certificate canceled. 



Article X. — Membership Fees and Finance. 



Section 1. Each member shall pay in advance to the association a member- 

 ship fee of ($ ). 



Sec 2. Certificate of indebtedness which shall draw interest at the rate of 

 (6) per cent per annum, may be issued by the board of directors to provide^ 

 capital to be used for the purchase or construction of buildings, the lease or 

 purchase of lands, the purchase of equipment, and for other purposes. 



Sec. 3. These certificates shall be issued in series and shall be retired by a 

 special fund created by levying a percentage assessment, to be determined by 

 the board of directors, on the products sold through the association. This 

 amount shall be sufficient to retire all certificates as they fall due and pay the 

 interest thereon. 



