14 BULLETIN r»41 r U. S. DEPARTMENT OF AGRICULTURE. 



SUGGESTED FORM OF BY-LAWS FOR A COOPERATIVE NONPROFIT 

 MARKETING ASSOCIATION FORMED WITHOUT CAPITAL STOCK. 



The following suggested form of by-laws provides for nonprofit 

 agricultural associations, formed without capital stock. These 

 by-laws should be regarded as merely suggestive and should be 

 changed to meet the individual needs of the association. 



The notes following some of the sections are merely explanatory 

 and, of course, are to be omitted in the by-laws adopted by the 

 organization. 



BY LAWS OF THE [HERE INSERT NAME OF ASSOCIATION]. 



Article I. — Name. 



Section" 1. This Association shall be known as the [Monroe County Cooperative 

 Fruit Association], 1 and shall be incorporated under the laws of the State of [Xew York]. 

 Its principal office shall be located in the town of [Hilton, State of New York]. 



Note.— The name should indicate the territory covered and the class of products handled as for 

 instance, the "Maine Potato Shippers' Exchange," "Richmond Egg Circle,*' etc. Some of the State 

 cooperative laws provide that the word "cooperative"' shall form part of the name of organizations 

 incorporated thereunder. Practically all associations should be incorporated under the laws of the 

 State in which they are located. 



Article II. — Objects. 



Section 1. The objects of this Association shall be to encourage better and more 

 economical methods of production; to secure better results in grading, packing, 

 marketing, and advertising the products of its members; to buy supplies in a coop- 

 erative way; to hire, buy, build, own, sell, and control such buildings and other real 

 and personal property as may be needed in the conduct of its operations: to cultivate 

 and develop the cooperative spirit in the community, and to perform any other work 

 which maj- tend to the betterment of the members and the general benefit of the 

 neighborhood. 



Note. — Hake the objects as definite as possible. It is also well to make them sufficiently broad in 

 seope to cover any future e^orts of the association. Care should be taken to ^tate the objects so as to 

 keep the activities within the limits of the power conferred by the statute under which the association 

 is incorporated, as well as In harmony with the articles of association. 



Article III. — Membership. 



Section 1. Any [bona fide grower of farm products, in any territory tributary to 

 the .shipping points of this Association] may become a member of the Association 

 by agreeing to comply with the requirements of these by-laws. 



Sec. 2. Upon bis entering into such an agreement and paying the membership fee, 

 the Association shall issue a certificate of membership to the applicant. Such cer- 

 tificate of membership shall not be transferable. 



Sbc. 3. At any time that the Board of Directors determines that a member has 

 A to be a bona fide grower of farm products, his membership shall be terminated 

 and his membership certificate shall be canceled. 



Note.— There may be conditions where it would be wise to limit membership to those who have been 

 recommended by the Board of Directors or who have received a two-thirds vote of the members present at 

 any meeting. In some localities there are persons who arc continually finding fault with the way things 

 are managed and such people make undesirable members. Organizations desiring to comply with (fee 

 requirements of Section 6 of the Clayton amendment of the antitrust laws should be made up entirely 

 of farmers. 



1 All matter appearing in brackets is simply suggestive, and is to be altered to suit the best tnicre 

 each individual association. 



