§421C-14  One member, one vote.  (a) Each member of an association shall have one and only one vote; provided thatsecondary associations, which are associations solely comprised of otherassociations or groups organized on a cooperative basis, may allow exceptionsto the one vote per member rule, by allocating votes on the basis of thefollowing:

(1)  The number of individual members in eachorganization; or

(2)  Size of dollar volume of direct transactionsbetween the member organizations and the secondary association.

(b)  Being "organized on a cooperativebasis" means being organized such that:

(1)  Each member has one vote and only one vote,except as may be altered in the articles or bylaws of a secondary cooperativeby provision for voting by member organizations;

(2)  The maximum rate at which any return is paid onshare or membership capital is limited; and

(3)  The allocation or distribution of net savingsafter making provision for such separate funds as may be required or speciallypermitted by statute, articles, or bylaws, is made to member patrons or to allpatrons, in proportion to their patronage; or is allocated in a manner whichbenefits the general welfare of all of the members of the association.

(c)  No voting agreement or other device toevade the one member, one vote rule shall be enforceable. [L 1982, c 97, pt of§2; am L 1984, c 217, §6]