LEGAL PHASES OF COOPERATIVE ASSOCIATION'S. 7 



discussed elsewhere, should be considered. Those interested in form- 

 ing associations of producers to act as live stock commission agencies 

 should have certain portions of the packer and stockyards act, 

 1921/^ in mind, and particularly section 306 thereof, which deals in 

 part with patronage dividends. 



Other important matters to be considered at the time of forming 

 an association are the particular provisions to be included in the 

 articles of association, the matter of finances, and of income taxes. 

 To avoid the necessity of amending the charter at a later date, steps 

 should be taken at the time of forming the corporation to see to it 

 that the powers acquired by the association on incorporation are 

 sufficiently broad to permit it to engage in any activity which it may 

 be found advisable to conduct. In the case of associations formed 

 with capital stock those interested should investigate the "blue 

 sky " laws of the State or States in which stock will be sold and 

 govern their actions accordingly.^^ The foregoing as well as other 

 matter appearing herein makes it plain that those desirious of 

 forming an association should have competent advice with respect 

 to the legal aspects of incorporation as well as the conduct of the 

 association's business. 



NAME OF ASSOCIATION. 



It is absolutely essential that a corporation have a name under 

 which it shall transact its business. Fundamentally the incorpora- 

 tors of a corporation may select any name they choose for the cor- 

 poration. Statutory provisions now exist in many States in refer- 

 ence to this subject. These provisions frequently require that the 

 name shall clearly indicate that the corporation is incorporated. 

 Sometimes the statutes require that the name shall include the word 

 " corporation," " incorporated," or the abbreviation, " Inc." Re- 

 strictions prohibiting the adoption of a name already used or so 

 similar thereto as to be easily mistaken therefor exist in many juris- 

 dictions. The statutes of a number of States prohibit the use of 

 the word " cooperative " in the name of a corporation unless the 

 corporation is a cooperative one or unless it is organized under cer- 

 tain statutory provisions and does business in accordance with 

 them. The term " association " standing alone at common law, and 

 in the absence of a statute, does not have a definite legal meaning. 

 It is true it suggests an organization, but whether the organization 

 is incorporated or unincorporated is unknown. Probably to many 

 it suggests a corporation, and many of the statutes providing for 

 the incorporation of a cooperative association state that the term 



18 42 Stat. 159. 



^ Cannon v. Farmers' Union Grain Agency, (Oregon) 202 Pac. 725 ; Kirk v. Farmers' 

 Union Grain Agency, (Oregon) 202 Pac"; 731. 



