{"data":{"id":"us-ky/krs-272.201","jurisdiction":"us-ky","citation":"KRS 272.201","heading":"Membership certificate -- Capital stock -- Payment for -- Voting rights --","body":"Purchase or redemption of stock.\n(1) When a member of an association established without capital stock has paid the\nmembership fee in full, the member shall receive notice of s uch membership\nwhether by a certificate of membership, letter, or otherwise. Such membership shall\nnot be transferable except as may be prescribed in the articles of incorporation and\nbylaws of the association.\n(2) No association shall issue capital stock until it has been fully paid for. Promissory\nnotes may be accepted by an association as full or partial payment. An association\nmay hold the stock as security for the payment of the note, but retention as security\nshall not affect a member's right to vote.\n(3) An association, in its bylaws, may limit the amount of voting stock which one (1)\nmember may own. No member of an association composed solely of producers of\nagricultural products shall be allowed to control more than forty-nine percent (49%)\nof such association's voting power.\n(4) An association, in its bylaws, may provide that no member shall have more than one\n(1) vote.\n(5) An association organized under KRS 272.101 to 272.341 whose members are one\n(1) or more associations may determine by its bylaw s the number of votes to which\neach member-association is entitled and provide for the appointment or election of\ndelegates to cast the votes and to represent the member -associations at all\nmembership meetings.\n(6) An association organized with stock may i ssue preferred stock, with or without the\nright to vote. Such stock may be redeemable or retirable by the association on terms\nand conditions provided for by the articles of incorporation and printed on the face\nof the certificate.\n(7) The voting stock of an association shall be transferable only to persons engaged in\nthe production of agricultural products or to associations of such persons. Such\nrestrictions must be printed upon every certificate of voting stock.\n(8) Except when its debts exceed fifty per cent (50%) of its assets, an association may\npurchase for cash its capital stock at book value or par value, whichever is less, and\nmay call such stock for redemption on the same basis pursuant to a plan for rotating\nownership of such stock set forth in its articles of incorporation or in its bylaws. The\ndetermination of book value by the board of directors shall be incontestable except\nfor fraud.","path":["KRS Chapter 272"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=13529","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:21Z","sha256":"05ff7e9d9051414d4c1b52d0775c51461e3337a2596cdebddacf4ecd7f106637","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272.200","next":"us-ky/krs-272.203"},"notice":"GroundRules: Original legal text. Not legal advice."}