26 BULLETIN 110 6, TJ. S. DEPARTMENT OF AGRICULTURE 
slow in giving the member access to the books and records of the 
association. 
In a Wisconsin case 28 a cooperative association brought suit to 
compel a member to perform his marketing contract. The member 
sought the unrestricted right to examine the books and papers of 
the association to obtain information with which to defend the suit. 
The lower court held that the member had the right to examine 
the books and papers secretly, but on appeal the supreme court of 
the State said : 
The order, when granted, should he upon affidavit of the defendant or his 
attorney specifying the particular documents to be examined and a showing of 
relevancy and materiality. The order should fully protect the plaintiff in its 
rightful custody of its books and records and in its right to supervise the 
examination to the extent that no improper use shall be made of its records, 
and that none are misplaced, destroyed, or lost. It should further reasonably 
limit the time in which the examination shall be made. 
TERMINATION OF MEMBERSHIP 
In a cooperative association formed with capital stock a person 
continues to be a member until a valid transfer, redemption, or for- 
feiture of his stock is effected. He can not resign. 29 Funda- 
mentally, and this is the rule in the absence of stipulations to the 
contrary, on the transfer of the stock of an association held by an in- 
dividual the purchaser stands in the place of the former owner as to 
rights and liabilities, and the former owner has no further interest 
in the association and is free from any further liability on account 
of the stock. 30 Of course, a member of an association may not de- 
feat his marketing contract therewith by a transfer of his stock. 
Fundamentally, in a nonstock cooperative association a person 
continues to be a member until he resigns, is expelled, or his member- 
ship is terminated in accordance with law. 
In the case of associations that require the payment of annual 
dues, the failure to pay such dues within the time prescribed does 
not terminate a membership in the absence of a by-law or stipulation 
to that effect: and if such dues are not paid, a suit may be success- 
fully maintained for their recovery. 31 
Although the marketing contract of a stockholder or member has 
expired, his stock is not forfeited or his membership terminated on 
account of that fact alone. Many of the cooperative statutes specif- 
ically authorize the associations formed under them to adopt by- 
laws with respect to the redemption or forfeiture of stock and the 
termination of membership. Generally, such by-laws require posi- 
tive and affirmative action, usually by the board of directors, before 
a membership is terminated in the case of a nonstock cooperative 
or before stock may be forfeited or a stockholder compelled to trans- 
fer his stock. 
Generally speaking, unless prohibited by statute, an association 
would be free at the time a producer was admitted to membership 
to prescribe the conditions under which his membership should ter- 
28 Northern Wisconsin Co-op. Tobacco Pool v. Oleson, — Wis. , 211 N. W. 923. 
29 Picalora v. Gulf Co-operative Co., 123 N. Y. S. 980. 
80 Whitney v. Bntler, 118 U. S. 655. 
81 LaSalle County Farm Bureau v. Thompson, 245 111. App. 413 ; Boston Club v. Potter, 
212 Mass. 23, 98 N. E. 614. 
