6 BULLETIN 1095, U. S. DEPARTMENT OF AGRICULTURE. 
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 dividends 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 incorporation has been 
completed. The organization then may undertake the objects for 
which it was established. 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 


