§ 5-508. Stock

   (a) Power of cooperative over its stock and membership. -- A cooperative may:

   (1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;

   (2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote;

   (3) Limit the number of shares of stock which a person may hold; and

   (4) Reserve to the board of directors:

      (i) The option to purchase for the cooperative the stock offered by any stockholder; and

      (ii) The right to redeem the stock of any stockholder.

(b) Exercise of option to purchase or redeem stock. -- If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value.

(c) Restrictions. -- A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:

   (1) Set forth in the charter; and

   (2) Printed on any stock subscription document and the stock certificate.

HISTORY: An. Code 1957, art. 23, § 365; 1975, ch. 311, § 2.