(a) A cooperative that is constituted entirely or partially of other cooperatives or associations may authorize by the articles or the bylaws for affiliated cooperative patron members to have an additional vote for:

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Terms Used In Tennessee Code 43-38-523

  • Bylaws: means a written agreement described in §. See Tennessee Code 43-38-103
  • Cooperative: means an association organized under this title conducting business on a cooperative plan as provided under this chapter. See Tennessee Code 43-38-103
  • Member: means a person or entity reflected on the books of the cooperative as the owner of governance rights of a membership interest of the cooperative and includes patron and nonpatron members. See Tennessee Code 43-38-103
  • Patron: means a person or entity who conducts patronage business with the cooperative. See Tennessee Code 43-38-103
  • Patron member: means a member holding a patron membership interest. See Tennessee Code 43-38-103
(1) A stipulated amount of business transacted between the patron member cooperative and the central cooperative organization;
(2) A stipulated number of patron members in the member cooperative;
(3) A certain stipulated amount of equity allocated to or held by the patron member cooperative in the cooperative central organization; or
(4) A combination of methods in subdivisions (a)(1) through (a)(3).
(b) A cooperative that is organized into units or districts of patron members, may, by the articles or the bylaws, authorize the delegates elected by its patron members or have an additional vote for:

(1) A stipulated amount of business transacted between the patron members in the units or districts and the cooperative;
(2) A certain stipulated amount of equity allocated to or held by the patron members of the units or districts of the cooperative; or
(3) A combination of methods in subdivisions (b)(1) and (b)(2).
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