HB 850 Summary: Missouri Cooperative Associations Act

• Establishes a new statutory framework (sections 1-77) for forming and operating cooperatives in Missouri, separate from existing cooperative association laws under sections 357.010 to 357.190

• Allows cooperatives to be organized by one or more persons and permits both patron members (who conduct business with the cooperative) and nonpatron members to hold membership interests with defined governance and financial rights

• Requires cooperatives to maintain articles of association, bylaws, a registered office and agent in Missouri, and provide patron membership interests with at least 15-50% of profits and distributions unless articles or bylaws specify otherwise

• Establishes governance structure with a board of directors (minimum 5 members, or 3 for cooperatives with 50 or fewer members) elected by members, with detailed provisions for director duties, conflicts of interest, indemnification, and member voting rights

• Provides procedures for mergers, consolidations, dissolution (voluntary or involuntary), and authorization of foreign cooperatives to conduct business in Missouri, with civil penalties for violations