Texas Laws - Business Organizations Code (pg. 262)
Sec. 251.404. Involuntary Termination.

pg. 262

Texas Laws | Business Organizations Code
BUSINESS ORGANIZATIONS CODE
TITLE 6. ASSOCIATIONS

(4) by returning to members their membership capital; and ⁽⁹⁷⁶⁷⁾

(5) by distributing any surplus in the manner provided by the certificate of formation: ⁽⁹⁷⁶⁸⁾

(A) among the patrons who have been members or subscribers of the cooperative association during the six years preceding the date of termination, on the basis of patronage during that period; ⁽⁹⁷⁶⁹⁾

(B) as a gift to any cooperative association or other nonprofit enterprise designated in the certificate of formation; or ⁽⁹⁷⁷⁰⁾

(C) by a combination of both methods of distribution. ⁽⁹⁷⁷¹⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁷⁷²⁾

Amended by: ⁽⁹⁷⁷³⁾

Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 133, eff. September 1, 2007. ⁽⁹⁷⁷⁴⁾

Sec. 251.404. INVOLUNTARY TERMINATION. ⁽⁹⁷⁷⁵⁾(Text)

A suit for involuntary termination of a cooperative association organized under this chapter may be instituted for the causes and prosecuted in the manner provided by Chapter 11. The assets of a cooperative association that is involuntarily terminated shall be distributed in accordance with Section 251.403. ⁽⁹⁷⁷⁶⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁷⁷⁷⁾

SUBCHAPTER J. MISCELLANEOUS PROVISIONS ⁽⁹⁷⁷⁸⁾(Text)

Sec. 251.451. EXEMPTION FROM TAXES. ⁽⁹⁷⁷⁹⁾(Text)

A cooperative association organized under this chapter is exempt from the franchise tax and license fees imposed by the state or a political subdivision of the state, except that a cooperative association is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if the cooperative association is exempt under that chapter. ⁽⁹⁷⁸⁰⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁷⁸¹⁾

Sec. 251.452. USE OF NAME "COOPERATIVE. ⁽⁹⁷⁸²⁾(Text)

" (a) Only a cooperative association governed by this chapter, a group organized on a cooperative basis under another law of this state, or a foreign entity operating on a cooperative basis and authorized to do business in this state may use the term "cooperative" or any abbreviation or derivation of the term "cooperative" as part of its business name or represent itself, in advertising or otherwise, as conducting business on a cooperative basis. ⁽⁹⁷⁸³⁾

(b) A person commits an offense if the person violates Subsection (a). An offense under this subsection is a misdemeanor punishable by: ⁽⁹⁷⁸⁴⁾

(1) a fine of not less than $25 or more than $200 for the first month in which the violation occurs; ⁽⁹⁷⁸⁵⁾

(2) a fine of not more than $200 for each month during which a violation occurs after the first month; ⁽⁹⁷⁸⁶⁾

(3) confinement in the county jail for not less than 30 days or more than one year; or ⁽⁹⁷⁸⁷⁾

(4) a combination of those punishments. ⁽⁹⁷⁸⁸⁾

(c) The attorney general may sue to enjoin a violation of this section. ⁽⁹⁷⁸⁹⁾

(d) If a court renders a judgment that a person who used the term "cooperative" before September 1, 1975, is not organized on a cooperative basis but is authorized to continue to use the term, the business shall place immediately after its name the words "does not comply with the cooperative association law of Texas" in the same kind of type and in letters not less than two-thirds the size of the letters used in the word "cooperative." ⁽⁹⁷⁹⁰⁾

(e) Notwithstanding this section, The University Cooperative Society, a domestic nonprofit corporation related to The University of Texas, may continue to use the word "cooperative" in its name. ⁽⁹⁷⁹¹⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁷⁹²⁾

CHAPTER 252. UNINCORPORATED NONPROFIT ASSOCIATIONS ⁽⁹⁷⁹³⁾(Text)

Sec. 252.001. DEFINITIONS. ⁽⁹⁷⁹⁴⁾(Text)

In this chapter: ⁽⁹⁷⁹⁵⁾

(1) "Member" means a person who, under the rules or practices of a nonprofit association, may participate in the selection of persons authorized to manage the affairs of the nonprofit association or in the development of policy of the nonprofit association. ⁽⁹⁷⁹⁶⁾

(2) "Nonprofit association" means an unincorporated organization, other than one created by a trust, consisting of three or more members joined by mutual consent for a common, nonprofit purpose. A form of joint tenancy, tenancy in common, or tenancy by the entirety does not by itself establish a nonprofit association, regardless of whether the co-owners share use of the property for a nonprofit purpose. ⁽⁹⁷⁹⁷⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁷⁹⁸⁾

Sec. 252.002. SUPPLEMENTARY GENERAL PRINCIPLES OF LAW AND EQUITY. ⁽⁹⁷⁹⁹⁾(Text)

Principles of law and equity supplement this chapter unless displaced by a particular provision of this chapter. ⁽⁹⁸⁰⁰⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁸⁰¹⁾

Sec. 252.003. TERRITORIAL APPLICATION. ⁽⁹⁸⁰²⁾(Text)

Real and personal property in this state may be acquired, held, encumbered, and transferred by a nonprofit association, regardless of whether the nonprofit association or a member has any other relationship to this state. ⁽⁹⁸⁰³⁾

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. ⁽⁹⁸⁰⁴⁾

Sec. 252.004. REAL AND PERSONAL PROPERTY; NONPROFIT ASSOCIATION AS BENEFICIARY. ⁽⁹⁸⁰⁵⁾(Text)

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