A. Only the following entities are entitled to use the term "cooperative" or an abbreviation or derivation of that term as part of their business names or to represent themselves as conducting business on a cooperative basis:
(1) associations organized pursuant to the Cooperative Association Act;
(2) groups organized on a cooperative basis pursuant to any other law of this state; and
(3) foreign corporations authorized to do business in this state on a cooperative basis pursuant to the Cooperative Association Act or any other law of this state.
B. Any person, firm or corporation violating the provisions of Subsection A of this section shall be guilty of a misdemeanor, punishable by a fine of not more than two hundred dollars ($200), and the attorney general or any aggrieved individual or association or group organized on a cooperative basis may sue to enjoin an alleged violation of this section.
C. Should the courts or the attorney general or the public regulation commission [secretary of state] decide that any person, firm or corporation, using the name "cooperative" prior to these provisions and not organized on a cooperative basis, is entitled to continue in such use, any such business shall always place immediately after its name, the words "does not comply with the cooperative laws of New Mexico" in the same kind of type and in letters not less than two-thirds as large as those used in the term "cooperative".
History: Laws 1939, ch. 164, § 37; 1941 Comp., § 54-1437; 1953 Comp., § 51-15-37; 2001, ch. 200, § 20.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Laws 2013, ch. 75, § 9 provided that as of July 1, 2013, the secretary of state, pursuant to N.M. const., Art. 11, § 19, shall assume responsibility for chartering corporations as provided by law, including the performance of the functions of the former corporations bureau of the public regulation commission, and that except for Subsection D of 53-5-8 NMSA 1978, references to the "public regulation commission", "state corporation commission" or "commission" shall be construed to be references to the secretary of state. See 8-4-7 NMSA 1978.
Cross references. — For optional use of "cooperative" in title of cooperative marketing association of agricultural producers, see 76-12-7 NMSA 1978.
The 2001 amendment, effective July 1, 2001, added the subsection designations; substituted "pursuant to the Cooperative Association Act" for "hereunder" in Paragraph A(1) and for "under this" in Paragraph A(3); and substituted "public regulation commission" for "state corporation commission" in Subsection C.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 18 Am. Jur. 2d Cooperative Associations §§ 5 to 9.
18 C.J.S. Corporations §§ 98 to 105.
Structure New Mexico Statutes
Article 4 - Cooperative Associations
Section 53-4-1.1 - Short title.
Section 53-4-2 - Who may incorporate.
Section 53-4-5 - Articles of incorporation; contents.
Section 53-4-6 - Articles of incorporation; filing; recordation; fees.
Section 53-4-6.1 - Registered office and registered agent.
Section 53-4-6.2 - Change of registered office or registered agent.
Section 53-4-6.3 - Service of process on association.
Section 53-4-6.4 - Recompiled.
Section 53-4-7 - Articles of incorporation; amendments; fee.
Section 53-4-8 - Adoption, amendment, or repeal of by-laws [bylaws].
Section 53-4-9 - Contents of by-laws [bylaws].
Section 53-4-9.1 - Indemnification of officers and directors.
Section 53-4-10 - Regular and special meetings.
Section 53-4-11 - Notice of meeting.
Section 53-4-12 - Meetings by units of the membership.
Section 53-4-13 - One member - one vote.
Section 53-4-15 - Voting by mail.
Section 53-4-16 - Application of voting provisions herein to voting by mail.
Section 53-4-17 - Application of voting provisions herein to voting by delegates.
Section 53-4-18.1 - Duties of directors.
Section 53-4-18.2 - Liability of directors.
Section 53-4-20 - Removal of directors and officers.
Section 53-4-21.1 - Disposition of property.
Section 53-4-22 - Limitations on interest-dividends.
Section 53-4-23 - Eligibility and admission to membership.
Section 53-4-24 - Subscribers.
Section 53-4-25 - Share and membership certificates; issuance and contents.
Section 53-4-26 - Transfer of shares and membership; withdrawal.
Section 53-4-27 - Share and membership certificates; recall.
Section 53-4-28 - Share and membership certificates; attachment.
Section 53-4-29 - Liability of members.
Section 53-4-31 - Allocation and distribution of net savings.
Section 53-4-33 - Books; auditing.
Section 53-4-34 - Annual report.
Section 53-4-35 - Notice of delinquent reports; forfeitures; reinstatement.
Section 53-4-36 - Voluntary dissolution.
Section 53-4-37 - Use of name "cooperative"; penalty.
Section 53-4-38 - Promotion expenses; limitations; penalty.
Section 53-4-39 - Spreading false reports; penalty.
Section 53-4-40 - Existing cooperative corporations.
Section 53-4-41 - Foreign corporations.
Section 53-4-42 - Legality declared; not in restraint of trade.
Section 53-4-43 - Laws not applicable.