§4A–12A–09.    NOT IN EFFECT

    ** TAKES EFFECT OCTOBER 1, 2026 PER CHAPTERS 198 AND 199 OF 2025 **

    (a)    The cooperative agreement of a limited worker cooperative association shall include:

        (1)    A statement of the capital structure of the association;

        (2)    The classes or other types of membership interests and relative rights, preferences, and restrictions granted to or imposed on each class or other type of membership interest, including:

            (i)    A statement concerning:

                1.    The manner in which profits and losses are allocated and distributions are made among members; and

                2.    If investor members are authorized, the manner in which profits and losses are allocated and distributions are made among investor members; and

            (ii)    A statement designating voting and other governance rights of each class or other type of membership interest, including which members have voting power and any restrictions on voting power;

        (3)    A statement of the method of admission of members;

        (4)    A statement that a membership interest is transferable, if it is to be transferable, and a statement of the conditions under which it may be transferred;

        (5)    A statement concerning whether and how persons that are not members but conduct business with the association may be allowed to share in allocations of profits and losses and receive distributions;

        (6)    A statement of the number and terms of representatives or the method by which the number and terms are determined;

        (7)    A statement addressing members’ contributions; and

        (8)    A statement on whether the limited worker cooperative association will elect to be taxed as a partnership or a corporation for federal and State income tax purposes that includes an explanation of the tax implications of the election for the worker members.

    (b)    The cooperative agreement of a limited worker cooperative association may contain any provision for managing and regulating the affairs of the association not inconsistent with its articles of organization or this title.

    (c)    A person that becomes a member of a limited worker cooperative association is deemed to assent to the cooperative agreement of the association.

    (d)    The cooperative agreement of a limited worker cooperative association may be entered into before, after, or at the time of filing of articles of organization and may be made effective as of:

        (1)    The time of formation of the association; or

        (2)    The time or date provided in the cooperative agreement.