Additionally, the bylaws may contain any restrictions and qualifications desired, including designation of districts or territories, length of term, and provisions for removing directors from the board. Chapter 274 specifically mandates that no director, during the term of his or her office, may be a party to a for-profit contract with the cooperative that differs from the business relations accorded to regular members of the association. Chapter 357 gives shareholders control of co-op policies. By direct vote, the shareholders govern policies including declaring dividends, setting aside reserve funds, and distributing cooperative savings. They need not be members of the cooperative.
Members can control their cooperative in a number of ways.
As discussed earlier, cooperative members enact the bylaws and may amend them by member vote. Each cooperative member is entitled to only one vote. Hence, all members share equally in the control of their cooperative. Under Chapter 274, members have the right to call a special membership meeting at any time if at least 10 percent of the members file a petition with the secretary of the board of directors. The petition must state the specific business to be discussed at the special meeting.