COOPERATIVE AGRICULTURE IN FLORIDA 101

 restricted class of stockholders-such as Common Stock,
 Voting Board or Board of Trust, etc.

 3. Place no limit on number of shares an individual
 or other corporation may own.

 4 Place no restrictions on transfer of stock

 5 Distribute all net profits as dividends on capital
 issued, whether the stock was paid for m cash-at par
 or below par-in service or given away; or the profits
 may be capitalized.



 COOPERATIVE CORPORATIONS

 There are five fundamental principles of cooperative
corporations:

 1. Ownership of association by the producers of the
commodity handled, if agricultural.

 2 Return on capital invested restricted to specified
rate of interest.

 3. All net profits returned to members in proportion
to patronage.
 4. One member one vote regardless of the number of
shares owned

 5. Option must be given the Association on all shares
offered for sale and all transfers must be approved by the
Association.

 There is a policy often pursued that gives the coopera-
tive concern an additional competing power but which
is not an essential requirement m cooperation: I refer to
the policy of retiring all outstanding stock from a sink-
mg fund provided from the profits, as the business will