64 BULLETIN 547, U. S. DEPARTMENT OF AGRICULTURE. 
MANAGEMENT. 
Twenty-two of the laws have clauses with regard to the manage- 
ment of the associations. Thirteen laws provide for a board of direc- 
tors of not less than five members, and 1 1 of this number also speciiy 
what officers the associations shall have; four laws provide for a 
board of not less than three directors, and two of these also provide 
for the officers. One law states that the board of directors shall 
consist of not less than five or more than nine members; one law 
provides for a board of managers made up of the president, secretary- 
treasurer, and three directors, and in three of the laws the question 
of management is left to the association to be stipulated in its by-laws. 
The officers usually specified are president, one or more vice presi- 
dents, secretary and treasurer, or a combined office, secretary- 
treasurer. 
CAPITAL STOCK. 
The regulations relating to capital stock usually included in 
cooperative laws are the maximum and minimum amount of capital 
stock, the value of a share of stock, when stock may be issued, limits 
on individual ownership of stock, and restrictions on the transfer of 
stock. Seven of the cooperative laws provide for the organization 
of associations without capital stock. Eleven laws make some pro- 
vision with regard to share value or with regard to the amount of 
stock that may be issued. Ten laws provide that shares are not to 
to be issued to stockholders until they are paid for in full. The 
amount of capital stock which one person may own is limited to 
$1,000 in 10 of the laws; in addition one of these laws specifies that 
one person must not own more than one-third of the stock out- 
standing, and another gives an association the power to change the 
limit if it desires to do so. Three of the laws state that the limit on 
individual stock ownership shall be as prescribed in the by-laws of 
the association. Four laws provide that a person must not own 
more than 20 per cent of the stock and one lav/ limits this to 10 per 
cent. One law places the limit at one share, one at five shares, one 
at $400, and one at $5,000. Four laws do not touch on this matter 
at all and seven relate to nonstock organizations. 
Eleven laws have provisions relating to the transfer of shares of 
stock, six of this number making it necessary to have the permission 
of the board of directors of the association before transferring the 
stock; four laws leave this matter for each association to include in 
its by-laws, and one law makes it possible for an association to have 
a clause in the by-laws providing that the association shall have the 
first opportunity to purchase any stock that may be for sale 
It is frequently desirable for two associations to consolidate or for 
one association to hold stock in another and 14 of the laws have made 
some provision for this. Some of the laws limit the amount that 
