New Member Application & Disclosure Agreement
I would like to become a Member of Co-opportunity and I agree to the following:
*The Co-opportunity Board may suspend or limit the redemption of Member equity accounts. The Board meets every other month, at which time requests for redemption are reviewed.
Date: March 5, 2021
This statement provides information about the Cooperative and the rights and obligations of members with respect to the Cooperative as required under the laws of the State of California.
LEGAL STATUS OF THE COOPERATIVE
The Cooperative is a cooperative corporation organized under the Consumer Cooperative Corporation Law of the State of California (which is found in the Corporations Code, Part 2, beginning with section 12200).
FINANCIAL AND OTHER OBLIGATIONS OF MEMBERS
An applicant for membership is required to purchase at least two Class A shares at the time of submitting the application. The purchase price of each share is $25. If the application is rejected, the Class A share purchase amount can be refunded.
To maintain membership and be in good standing, members are required to purchase at least two Class A shares in the amount of $50 each year subsequent to year of admission to membership. Such purchase is required to be made by the anniversary date of admission to membership. This obligation continues until the member has purchased eight Class A shares at a total purchase price of $200. No member may purchase more than eight Class A shares.
If a member fails to make the required share purchase, the member can reactivate his or her membership within three years of the failure to make the required share purchase and reacquire good standing by purchasing at least two shares in the amount of $50 for the current year and paying a reactivation fee equal to the amount owed for any shares the member has failed to purchase. Shares previously purchased will be counted towards the fulfillment of the obligation to purchase eight shares.
The share purchase obligation and share purchase price are subject to increase by the Cooperative’s Board of Directors. Except for the reactivation fee described above, no other dues, assessments, or fees are authorized by the bylaws. Members are not required to contribute services to the Cooperative.
VOTING RIGHTS AND OTHER PROPRIETARY INTERESTS
Voting rights are strictly equal among members, each member being entitled to vote on a one-person, one-vote basis irrespective of the number of shares owned. But voting rights will be suspended upon a member becoming inactive by failing to meet the share purchase obligation. Voting rights will be reinstated if the member makes sufficient payment to become current in the share purchase obligation within 3 years of having become delinquent.
Proprietary interests of members, including share capital and retained patronage rebates, are, however, unequal among members. Although uniformly assessed, share capital varies widely among members, the accumulated amount being dependent upon how long the person has been a member and to what extent the person has been delinquent in the share purchase obligation. Although allocated on a uniform basis, retained patronage rebates vary widely among members, the accumulated amount being dependent upon the length of time a person has been a member, the amount of purchases as a member, the profitability of the Cooperative in the years of purchases, and the portion of allocations for particular years retained by the Cooperative.
RESTRICTIONS ON TRANSFER
Members may not under any circumstances transfer to another person their membership or their proprietary interests in the Cooperative.
REDEMPTION OF PROPRIETARY INTERESTS
Share capital will be redeemed upon voluntary withdrawal from membership, unless such payment would cause the Cooperative to be unable to meet its liabilities, at the discretion of the board. * Member equity is subordinate to the claims of creditors. Share capital will not be redeemed upon termination of membership for delinquency in payment of the share purchase obligation or upon suspension or expulsion for cause. Share capital is not otherwise redeemable at the option of the member or the Cooperative. Retained patronage rebates are redeemable only as determined by the Cooperative’s Board of Directors. The time of redemption of retained patronage rebates is not accelerated by termination of membership nor in any other way at the option of a member. *The Co-opportunity Board may suspend or limit the redemption of member equity accounts. The Board meets every other month, at which time requests for redemption are reviewed.
Further and more detailed information regarding the above matters may be found in the Bylaws of the Cooperative. A copy of the Cooperative’s articles of incorporation as amended and its current Bylaws will be furnished without charge to a member or prospective member upon written request directed to the Cooperative at Co-opportunity Market Santa Monica, 1525 Broadway, Santa Monica, CA 90404.
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Document Name: New Member Application & Disclosure Agreement
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