                                 CODE OF VIRGINIA

RIGHTS AND LIABILITIES OF MEMBERS (§ 56-231.30)

A. A cooperative may have one or more classes of members. If the cooperative has
more than one class of members, the designation of each class and the
qualifications and rights of the members of each class shall be set forth in the
bylaws of the cooperative.

B. A cooperative shall issue to its members certificates of membership and each
member shall be entitled to only one vote at the meetings of the members of the
cooperative. The liability of each member shall be limited to the unpaid portion
of his membership fee or subscription to capital stock, and any unpaid bills for
utility services or other services, commodities or merchandise purchased from
the cooperative, provided that nothing in this section shall be construed to
limit the exposure of any unrefunded patronage capital to the lawful creditors
of a cooperative. The equity of members of a nonstock cooperative shall be set
by the board in accordance with cooperative principles. A cooperative shall be
operated on a not-for-profit basis, with the exception of for-profit affiliates,
for the mutual benefit of the members. The bylaws of a cooperative or its
contract with the members shall contain such provisions relative to the
disposition of margins as may be necessary and appropriate to establish and
maintain its nonprofit and cooperative character.

HISTORY: 1999, c. 874; 2000, cc. 944, 964, 989, 999.