1. (a) A cooperative may:

   1. (1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;
   2. (2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote;
   3. (3) Limit the number of shares of stock which a person may hold; and

   4. (4) Reserve to the board of directors:

      1. (i) The option to purchase for the cooperative the stock offered by any stockholder; and
      2. (ii) The right to redeem the stock of any stockholder.
2. (b) If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value.

3. (c) A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:

   1. (1) Set forth in the charter; and
   2. (2) Printed on any stock subscription document and the stock certificate.

Added by Acts 1975, c. 311, § 2, eff. July 1, 1975.

Formerly Art. 23, § 365.