10 



BULLETIN 860, U. S. DEPARTMENT OF AGRICULTURE. 



form becomes a simple matter. As a matter of fact, formal organi- 

 zation, including incorporation, adoption of by-laws, and election of 

 the first directors, is a technical procedure that can be carried out 

 more expeditiously and with greater exactness by a small number of 

 incorporators than by a large body of members meeting under con- 

 ditions not always favorable to deliberate and orderly procedure. 



A form of by-laws that is believed to embody the principles of co- 

 operation most necessary to observe in a cooperative grain elevator 

 company is given below. With slight modifications it should fur- 

 nish a practical plan of organization under the laws governing cap- 

 ital stock forms of cooperative associations and companies in most 

 of the grain States. 



The notes following some of the sections are explanatory, and, of 

 course, are to be omitted in the by-laws adopted by the organization. 

 The by-laws when read in connection Avith the explanatory notes 

 are thought to be sufficiently descriptive of the plan without further 

 detail here. 



These by-laws should be regarded as suggestive only, and they 

 should be changed to meet the individual and local needs of an 

 association as well as to conform to governing State laws. 



Suggested Form of By-laws foe Cooperative Grain Elevator Companies. 1 



ARTICLE I. CORPORATE PURPOSE. 



Section. 



1. Name and location. 



2. Objects. 



3. Powers. 



Article II. — Capital Stock. 



1. Authorized. 



2. Treasury stock. 



3. Stock certificates. 



4. Stock receipts. 



5. Stock transfers. 



6. Lost certificates. 



Article III. — Membership. 



1. Qualifications. 



2. Termination. 



3. Restrictions. 



4. Reversions. 



5. Annual meetings. 



6. Special meetings. 



7. Notice of meetings. 



8. Quorum. 

 0. Proxies. 



10. Order of business. 



Article IV. — Directors and Officers. 



1. Election of directors. 



2. Election of officers. 



3. Vacancies. 



4. Quorum. 



5. Compensation. 



6. Removal. 



Article V. — Duties of Directors. 



1. Management of business. 



2. Employment of manager. 



3. Bonds. 



4. Meetings. 



5. Annual audits. 



6. Depreciation. 



7. Educational work. 



Article VI. — Duties of Officers. 



1. President. 



2. Vice President. 



3. Secretary. 



4. Treasurer. 



Article VII. — Duties of Manager. 



1. In general. 



2. Duty to account. 

 :>,. Duty lo insure. 

 4. Control of help. 



1 These by-laws were prepared with the cooperation of secretaries of State Farmer> 

 Grain Dealers Associations. 



