Goto previous pageGoto next page
pg. 262

Texas Laws | Business Organizations Code

(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)

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)


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)


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)


Goto previous page262Goto next page


Our Mission

Our mission is to provide citizens free access to the laws and codes of their state utilizing a unique search engine that matches clients with qualified legal professionals who can help with specific issues.

Our goal is to do this in a manner that promotes open government and freedom of information, while providing attorneys with valuable tools to connect with qualified prospects in need of professional services.

Ignorance Is No Excuse
Your Right To Know The Law

All citizens have a right to have access to the laws that govern them. Citizen awareness and participation in government is fundamental to ensuring a sound democracy.

Although unfettered access to the law is a fundamental right to all citizens, there is no substitute for experienced legal counsel.

We do not recommend self-representation. We do, however, recognize that in an age where people routinely research legal matters online using everything from a smartphone to their xbox, both attorneys and clients alike can benefit from this resource.

Select a State