(a) If raw agricultural products are delivered by members to a cooperative association under marketing contracts which entitle the members to net proceeds from the sale of the products in their raw or processed state and subject the members to assessments in the event of an operating loss, the financial statements for associations engaged in handling raw agricultural products shall be audited by the association’s independent certified public accountant. The audit shall be made in accordance with generally accepted auditing standards. Copies of the financial statements together with the independent certified public accountant’s report on the examination of the association’s financial statements shall be furnished to each member or stockholder of the association and the Maryland Secretary of Agriculture on an annual basis. An independent certified public accountant and legal counsel shall be appointed by the association’s board of directors. The certified public accountant shall explain the report orally to the board of directors and shall also certify to the Secretary of Agriculture that the audit has been made in accordance with generally accepted auditing standards.
(b) The requirements of this section shall be met also by all foreign cooperative associations engaged in handling raw agricultural products that have one or more Maryland residents as members or stockholders.
Structure Maryland Statutes
Title 5 - Special Types of Corporations
Subtitle 5 - Agricultural Cooperatives
Section 5-502 - Purposes of Incorporation
Section 5-503 - Who May Incorporate; Capital Stock
Section 5-504 - Powers in General
Section 5-505 - Articles of Incorporation -- Execution; Contents
Section 5-506 - Articles of Incorporation -- Amendment
Section 5-507 - Corporation May Be Converted Into Cooperative
Section 5-509 - Payment by Subscriber Before Certificate of Stock or Membership Issued
Section 5-510 - Use of Term "Cooperative" in Corporate Name
Section 5-512 - Management of Cooperative; Number and Qualifications of Directors
Section 5-513 - Original Directors; Election and Term of Successors
Section 5-514 - Election of Directors by Districts
Section 5-515 - Vacancies on Board of Directors
Section 5-516 - Compensation and Contracts of Officers and Directors
Section 5-517 - Required and Permitted Officers
Section 5-518 - Removal of Director and Officer
Section 5-522 - Contracts With Members
Section 5-523 - Membership in Another Cooperative
Section 5-524 - Transactions With Other Cooperatives
Section 5-525 - Patronage Distributions
Section 5-526 - Operating on Nonprofit Basis
Section 5-527 - Consolidation, Merger, Share Exchange, Transfer of Assets, or Dissolution
Section 5-528 - Payment When Another Business Is Purchased
Section 5-529 - Audit of Financial Statement of Cooperative Handling Raw Agricultural Products
Section 5-530 - Cooperative and Marketing Agreements Not in Restraint of Trade
Section 5-531 - Application of Maryland General Corporation Law