Source: https://code.dccouncil.us/dc/council/code/titles/29/chapters/9/
Timestamp: 2019-01-21 07:56:21
Document Index: 254223039

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D.C. Law Library - Chapter 9. General Cooperative Associations.
§ 29–901. Short title.
§ 29–902. Definitions.
§ 29–903. Incorporators.
§ 29–904. Purposes for incorporation.
§ 29–908. Bylaws; adoption, amendment, or repeal.
§ 29–909. Bylaws — Contents.
§ 29–910. Meetings; regular and special.
§ 29–911. Meetings; regular and special — Notice.
§ 29–912. Meetings; regular and special — Units of membership.
§ 29–913. Voting — Number permitted by each member.
§ 29–914. Voting — Proxy prohibited.
§ 29–915. Voting — By mail or by electronic mail.
§ 29–916. Voting provisions — Application to voting by mail or electronic mail.
§ 29–920. Removal of directors and officers; vote required for approval; vacancies.
§ 29–921. Referendum on acts of directors.
§ 29–922. Limitations upon the return on capital.
§ 29–923. Eligibility and admission to membership.
§ 29–924. Subscribers.
§ 29–925. Share and membership certificates; issuance and contents.
§ 29–926. Transfer of shares and memberships; withdrawal.
§ 29–927. Share and membership certificates — Recall.
§ 29–928. Share and membership certificates — Exemption for attachment, execution and garnishment.
§ 29–929. Liability of members.
§ 29–930. Expulsion of members; procedure; purchase of holdings.
§ 29–931. Allocation and distribution of net savings.
§ 29–932. Bonding of officers and employees.
§ 29–933. Audit.
§ 29–934. Dissolution; methods; vote required for approval; distribution of assets.
§ 29–935. Existing cooperative groups; acceptance of act; filing and recordation of amended articles and bylaws.
§ 29–936. Foreign corporations and associations; admission to do business.
§ 29–937. Compliance with chapter; not in restraint of trade.
§ 29–938. Chapter 3 of this title applicable to associations.
§ 29–939. Taxation; annual license fee.
This chapter may be cited as the “General Cooperative Association Act of 2010”.
Homestead housing preparation program, “condominium or unit owners association” defined, see § 42-2103.
Rental housing conversions and sales, “cooperative” and “Cooperative Act” defined, see § 42-3401.03.
(1) “Articles” means the articles of incorporation referred to in § 29-906.
(2) “Association” means a group enterprise incorporated under this chapter. An association shall be treated as a nonprofit corporation for purposes of taxation or securities regulation under the law of the District.
(3) “Cooperative basis” as applied to any incorporated or unincorporated group referred to in §§ 29-905(7), 29-913, 29-923, 29-935, and 29-936 means that:
(4) “Member” means a member in a nonshare association or share association.
(5) “Net savings” means the total income of an association minus the costs of operation.
(6) “Savings returns” means the amount returned to the patrons in proportion to their patronage or otherwise in accordance with § 29-931.
1981 Ed., § 29-1102.
1973 Ed., § 29-802.
1981 Ed., § 29-1103.
1973 Ed., § 29-803.
(5) Acquire, own, hold, sell, lease, pledge, mortgage, or otherwise dispose of any property incident to its purposes and activities and affairs;
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(2), 59 DCR 13171.)
1981 Ed., § 29-1104.
1973 Ed., § 29-804.
This section is referenced in § 29-902.
The 2013 amendment by D.C. Law 19-210 substituted “activities and affairs” for “activities” in (5).
(a) Amendments to the articles may be proposed by a 2/3 vote of the board of directors or by petition of 10% of the association’s members. The secretary shall send notice of the meeting to consider an amendment at least 30 days in advance to each member at the member’s last known address, accompanied by the full text of the proposal and by that part of the articles to be amended. Two-thirds of the members voting may adopt the amendment and when verified by the president and secretary, it shall be filed and recorded with the Mayor within 30 days of its adoption, and a fee established by the Mayor by rule shall be paid.
(b) If the amendment is to alter the preferences of outstanding shares of any type, or to authorize the issuance of shares having preferences superior to outstanding shares of any type, the vote of 2/3 of the members owning such outstanding shares affected by the change shall also be required for the adoption of the amendment. If the amendment is to alter the rule by which members’ property rights in a nonshare association are determined, a vote of 2/3 of the entire membership shall be required.
1981 Ed., § 29-1107.
1973 Ed., § 29-807.
1981 Ed., § 29-1108.
1973 Ed., § 29-808.
(1) Method and terms of admission to membership and the disposal of members’ interests on cessation of membership for any reason;
(7) Various discretionary provisions of this chapter as well as other provisions incident to the purposes and activities and affairs of the association.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(3), 59 DCR 13171.)
1981 Ed., § 29-1109.
1973 Ed., § 29-809.
The 2013 amendment by D.C. Law 19-210 substituted “activities and affairs” for “activities” in (7).
Regular meetings of members shall be held as prescribed in the bylaws, but shall be held at least once a year. Special meetings may be demanded by a majority vote of the directors or by written petition of at least 10% of the membership, in which case it shall be the duty of the secretary to call such meeting to take place within 30 days after the demand. Regular or special meetings, including meetings by units as hereinafter provided, may be held inside or outside the District as the articles may prescribe. If authorized by the articles or bylaws, members may participate in regular and special meetings of members remotely in accordance with § 29-305.09.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(4), 59 DCR 13171.)
1981 Ed., § 29-1110.
1973 Ed., § 29-810.
The 2013 amendment by D.C. Law 19-210 added the last sentence.
The secretary shall give notice of the time and place of meetings by sending a notice thereof to each member at the member’s last known address not less than the number of days in advance of the meeting specified in the bylaws. In case of a special meeting, the notice shall specify the purpose for which the meeting is called. If authorized by the articles or bylaws, the notice may be sent by electronic mail in accordance with § 29-305.09.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(5), 59 DCR 13171.)
1981 Ed., § 29-1111.
1973 Ed., § 29-811.
The articles or bylaws may provide for the holding of meetings by units of the membership and may provide for a method of transmitting the votes there cast to the central meeting, or for a method of representation by the election of delegates to the central meeting, or for a combination of both of these methods. If authorized by the articles or the bylaws, members may participate in such meetings remotely in accordance with § 29-305.09.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(6), 59 DCR 13171.)
1981 Ed., § 29-1112.
1973 Ed., § 29-812.
1981 Ed., § 29-1113.
1973 Ed., § 29-813.
This section is referenced in § 29-902 and § 29-925.
1981 Ed., § 29-1114.
1973 Ed., § 29-814.
This section is referenced in § 29-925.
(a) The articles or bylaws may provide for either or both of the following types of voting by mail or by electronic mail in accordance with § 29-305.09[:]
(1) That the secretary shall send to the members a copy of any proposal scheduled to be offered at a meeting, together with the notice of the meeting, and that the mail votes or the electronic mail votes by the members shall be counted together with those cast at the meeting if the mail votes or the electronic mail votes are returned to the association within a specified number of days; and
(2) That the secretary shall send to any member absent from a meeting an exact copy of the proposal acted upon at the meeting, and that the mail vote or the electronic mail vote of the member upon such proposal, if returned within a specified number of days, shall be counted together with the votes cast at the meeting.
(b) The articles or bylaws may also determine whether and to what extent the mail votes or the electronic mail votes shall be counted in computing a quorum.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(7), 59 DCR 13171.)
1981 Ed., § 29-1115.
1973 Ed., § 29-815.
The 2013 amendment by D.C. Law 19-210 added “or by electronic mail” at the end of the section heading; added “or by electronic mail in accordance with § 29-305.09” in the introductory language of (a); and added “or the electronic mail vote” and “or the electronic mail votes” throughout (a) and (b).
If the articles or bylaws have provided for voting by mail or by electronic mail, any provision of this chapter referring to votes cast by the members must be construed to include the votes cast by mail or by electronic mail.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(8), 59 DCR 13171.)
1981 Ed., § 29-1116.
1973 Ed., § 29-816.
If an association has provided for voting by delegates, any provision of this chapter referring to votes cast by the members shall apply to votes cast by delegates, but this shall not permit delegates to vote by mail or electronic mail.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(9), 59 DCR 13171.)
1981 Ed., § 29-1117.
1973 Ed., § 29-817.
The 2013 amendment by D.C. Law 19-210 added “or electronic mail” at the end of the section.
The officers of an association shall include a president, one or more vice-presidents, a secretary and a treasurer, or a secretary-treasurer. The officers shall be elected annually by the directors unless the bylaws otherwise provide. The president and at least one vice-president shall be directors, but no other officer need be a director.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(11), 59 DCR 13171.)
1981 Ed., § 29-1119.
1973 Ed., § 29-819.
The 2013 amendment by D.C. Law 19-210 substituted “shall include” for “include.”
A director or officer may be removed, with or without cause, by a vote of 2 /3 of the members voting at a regular or special meeting. The director or officer involved shall have an opportunity to be heard in person or by counsel at the meeting. A vacancy caused by any such removal shall be filled by the vote provided in the bylaws for election of directors, if the bylaws provide for a means of electing or appointing officers that means.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(12), 59 DCR 13171.)
1981 Ed., § 29-1120.
1973 Ed., § 29-820.
1981 Ed., § 29-1121.
1973 Ed., § 29-821.
1981 Ed., § 29-1122.
1973 Ed., § 29-822.
This section is referenced in § 29-931.
1981 Ed., § 29-1123.
1973 Ed., § 29-823.
1981 Ed., § 29-1124.
1973 Ed., § 29-824.
No certificate for share or membership capital shall be issued until the par value thereof has been paid for in full. A full or condensed statement of the requirements of §§ 29-913, 29-914, 29-915, and 29-927 shall be printed upon each certificate issued by an association.
1981 Ed., § 29-1125.
1973 Ed., § 29-825.
(a) If a member desires to withdraw from the association or dispose of any or all of the member’s holdings therein, the directors may purchase the holdings by paying the member the par value of any or all the holdings offered. The directors shall then reissue or cancel the holdings. A vote of the majority of the members voting at a regular or special meeting may order the directors to exercise this power to purchase.
1981 Ed., § 29-1126.
1973 Ed., § 29-826.
The bylaws may give the directors the power to use the reserve funds to recall, at par value, the holdings of any member in excess of the amount requisite for membership. The bylaws may also provide that if any member has failed to patronize the association during a period of time specified in the bylaws, the directors may use the reserve funds to recall all the member’s holdings and thereupon the member shall cease to be a member of the association. When so recalled, the certificates of share or membership capital shall be either reissued or canceled.
1981 Ed., § 29-1127.
1973 Ed., § 29-827.
1981 Ed., § 29-1128.
1973 Ed., § 29-828.
1981 Ed., § 29-1129.
1973 Ed., § 29-829.
A member may be expelled by the vote of a majority of the members voting at a regular or special meeting. The member against whom the charges are to be preferred shall be informed thereof in writing at least 10 days in advance of the meeting and shall have an opportunity to be heard in person or by counsel at the meeting. On the decision of the association to expel a member, the board of directors shall purchase the member’s holdings at par value, if and when there are sufficient reserve funds.
1981 Ed., § 29-1130.
1973 Ed., § 29-830.
(A) In the case of a member patron, the member’s proportionate amount of savings returns shall be distributed to the member unless the member agrees that the association should credit the amount to the member’s account toward the purchase of an additional share or shares or additional membership capital.
(B) In the case of a subscriber patron, the patron’s proportionate amount of savings returns may, as the articles or bylaws provide, be distributed to the patron or credited to the patron’s account until the amount of capital subscribed for has been fully paid.
(C) In the case of a nonmember patron, the patron’s proportionate amount of savings returns shall be set aside in a general fund for such patrons and shall be allocated to individual nonmember patrons only upon request and presentation of evidence of the amount of their patronage. Any savings return so allocated shall be credited to such patron toward payment of the minimum amount of share or membership capital necessary for membership. When a sum equal to this amount has accumulated at any time within a period of time specified in the bylaws, the patron shall be deemed to be, and becomes, a member of the association if the patron so agrees or requests and complies with any provisions in the bylaws for admission to membership. The certificates of shares or membership to which the patron is entitled shall then be issued to the patron.
(II) Any nonmember patron has not accumulated in the patron’s individual account the sum necessary for membership; or
1981 Ed., § 29-1131.
1973 Ed., § 29-831.
1981 Ed., § 29-1132.
1973 Ed., § 29-832.
An association may, at any regular or special meeting legally called, be directed to dissolve by a vote of 2 /3 of the entire membership. By a vote of a majority of the members voting, 3 members shall be designated as trustees, who shall, on behalf of the association and within a time fixed in their designation or within any extension thereof, liquidate its assets, and shall distribute them in the manner set forth in this section. The association shall file a statement of dissolution with the Mayor. An action in the Superior Court for judicial dissolution of an association organized under this chapter may be instituted for the causes and prosecuted in the manner set forth in part B of subchapter XII of Chapter 4 of this title; provided, that any distribution of assets shall be in the manner set forth in this section. In case of any dissolution of an association, its assets shall be distributed in the following manner and order:
(B) As a gift to any consumers’ cooperative association or other nonprofit enterprise which may be designated in the articles.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(13), 59 DCR 13171.)
1981 Ed., § 29-1136.
1973 Ed., § 29-836.
This section is referenced in § 29-906 and § 29-931.
The 2013 amendment by D.C. Law 19-210 substituted “part B of subchapter XII of Chapter 4 of this title” for “part B of subchapter XII of Chapter 3 of this title” in the introductory paragraph.
Any group incorporated under another law of the District and operating on a cooperative basis or any unincorporated group operating on such a basis in the District may elect by a vote of 2 /3 of the members voting to secure the benefits of and be bound by this chapter, and shall thereupon amend the parts of its articles and bylaws as are not in conformity with this chapter. A certified copy of the amended articles shall be delivered to the Mayor for filing.
(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(i)(14), 59 DCR 13171.)
1981 Ed., § 29-1140.
1973 Ed., § 29-840.
The 2013 amendment by D.C. Law 19-210 substituted “delivered to the Mayor for filing” for “filed with the Mayor.”
A foreign corporation or association operating on a cooperative basis and complying with the applicable laws of the state wherein it is organized shall be entitled to do business in the District as a foreign cooperative corporation or association and shall govern itself in accordance with its bylaws and the laws of the state wherein it is organized. A foreign corporation or association shall file a foreign registration statement as provided in § 29-105.03.
1981 Ed., § 29-1141.
1973 Ed., § 29-841.
This section is referenced in § 29-902 and § 29-939.
1981 Ed., § 29-1142.
1973 Ed., § 29-842.
This section is referenced in § 29-1001.08.
1981 Ed., § 29-1144.
1973 Ed., § 29-844.