(a) (1) A cooperative may divide itself into 2 or more cooperatives under this subtitle.
(2) A written plan of division shall be prepared by the board or by a committee selected by the board for that purpose.
(3) The plan shall set forth all the terms of the division and its proposed effect on all members and stockholders of the cooperative.
(4) The plan shall contain the articles of incorporation of each new cooperative being formed and any amendments to the articles of incorporation of the remaining cooperative.
(b) The members and stockholders entitled to vote shall approve the plan in the manner provided for amendments to the articles of incorporation. This provision is reserved for the members and may not be the prerogative of the delegates.
(c) (1) Articles of division shall set forth the approved plan and shall be filed and recorded as an amendment to the articles of incorporation.
(2) Each part of the plan that contains the articles of incorporation of a new cooperative shall be filed separately and recorded as articles of incorporation for the new cooperative.
Structure Maryland Statutes
Title 5 - Special Types of Corporations
Subtitle 5A - Maryland Consumer Cooperative Act
Section 5-5A-01 - Applicability of Subtitle
Section 5-5A-03 - Incorporation of Consumer or Federated Cooperative; Permissible Business Activity
Section 5-5A-04 - Number Required for Incorporation
Section 5-5A-05 - Formation of Cooperative; Evidence of Membership Interest
Section 5-5A-06 - General Powers
Section 5-5A-07 - Contents of Articles of Incorporation or Bylaws
Section 5-5A-09 - Conversion of Corporation Into Consumer Cooperative; Adoption of Name
Section 5-5A-10 - Use of Word "Cooperative" in Conducting Business
Section 5-5A-12 - Management of Cooperative; Number and Qualifications of Directors
Section 5-5A-13 - Original Directors; Election and Term of Successors
Section 5-5A-14 - Bylaws Provision for Election of Directors and Delegates of Members
Section 5-5A-16 - Removal of Directors, Officers, and Delegates
Section 5-5A-17 - Remuneration of Officers and Directors
Section 5-5A-18 - Eligibility for Membership
Section 5-5A-19 - Meetings; Quorum
Section 5-5A-21 - Amendments to Articles of Incorporation; Action on Bylaws
Section 5-5A-22 - Apportionment of Net Savings
Section 5-5A-23 - Auditing; Annual Report
Section 5-5A-24 - Consolidation, Merger, Transfer of Assets, Dissolution, or Division
Section 5-5A-26 - Applicability of Subtitle
Section 5-5A-27 - Organization of Economic Activity Under Subtitle Not Cause of Illegality in Itself
Section 5-5A-28 - Evidence of Membership Capital Not Security