Senate Bill 2353 - Cooperative Associations

• Establishes comprehensive framework for incorporating and operating cooperative associations in Mississippi, including provisions for membership, governance, stock issuance, and asset distribution.

• Requires five or more adults (with at least one Mississippi resident) to form a cooperative by filing articles of association; cooperatives must maintain principal office in Mississippi and file annual reports by April 15.

• Restricts dividend rates on stock to maximum 6% of par value and limits cooperative member voting to one vote per member regardless of stock holdings; requires directors to be members.

• Allows cooperatives to enter enforceable member contracts up to five years (renewable) for product sales, marketing, and procurement with liquidated damages capped at 30% of contract value.

• Prohibits use of term "cooperative" by non-cooperatives with fines up to $100 per day of violation; establishes $20-$50 filing fees and administrative dissolution procedures for non-compliance with annual reporting and registration requirements.