Senate Bill 2942 - Cooperative Associations

• Establishes comprehensive framework for incorporating and operating cooperative associations in Mississippi, including powers, membership requirements, governance structure, and dissolution procedures.

• Requires five or more adults (at least one resident) to form a cooperative by filing articles of association with the Secretary of State and county chancery clerk; cooperatives may operate with or without capital stock.

• Limits stock dividends to 6% annually, restricts member voting to one vote per member (with limited exceptions for member associations and patronage-based voting), and requires directors to distribute net proceeds to patrons annually based on their patronage ratio.

• Authorizes cooperatives to enter binding contracts with members for up to five years (renewable) with liquidated damages capped at 30% of contract value; filed contracts establish cooperatives' ownership interest in member products.

• Provides procedures for voluntary and involuntary dissolution, mergers, consolidations, and conversions; designates "cooperative" as a protected term with $100 fines for improper use and authorizes injunctions against unauthorized use.