130 DEPARTMENT OF AGRICULTURE


secretary of the assri.iiion, together with a petition signed by ten per
cent of theI members, requestmg the removal of the officer or director in
question. The removal shall be voted upon at the next regular or special
meeting of die association. and by a vote of a nlmajorty of the members,
the association nmay remove ite officer or director and fill the vacancy. The
director or officer against whoum such charges have been brought shall be
informed in writing of the charges previous to the meeting and shall have
in opportunity at the mieetg to be heard in person or b) counsel and
to present witnesses; and the person bringing the charges against him
shall have the same opportunity.

 In case the by-laws provide for election of drcetols by districts with
primary elections in each district then the petition for removal of a di
rector must be signed by htenty per cent of the members residing in the
district from which lie ias elected. The board of directors must call a
special meeting of tlie members residing in that district to consider the
removal of the director. By a vote of the majority of the members of that
district, the director in question shall be removed from office.

 618.15 Capital stock and membership, etc.--When a member of an
association organized without capital stock has paid his memiberslip fee
in full ie shall receive a certificate of membership. An association ma}
issue its shares of stock having no par value from time to time for such
considei.ation as may lie fied by the board of directors. No association
shall issue stock until it has been fully paid for. Promissory notes may be
accepted by die association as full or partial payment for such stock The
association shall hold the stock :a security for the payment of the note,
but such retention is security shall not affect the right of any stockholder
to l tl unlless such notes are past die.

 No mm.n.ier srall] be lhable fo the debts of the asioeiation to an
amotnnl exceedingg t11i1' sml rTelilmaiilg unpaid on his nIIemIlbrshln fee or his
subscription to capital stock, including an. unpaid balaiie on an.. promis-
sory notea given in payment thereof.
 No stockholder of an association orgamuzed tinder this chapter, except
an associationn oignnized under this chapter oi an assoemation is defined
m tils chapter, shall own more than one-thurd of the outstanding common
stock of the association, and an association in its by-lals ma1. limit the
amount of common stock Iwhich one member imay own to an a.mlount less
than one-third of the outstanding common stock. The association shall
lmiit its dividends on stock both counmon and preferred, to any amount
nlo greater than eight per cent pet annum on the par value thereof, or
if suii capital stock is without par value, then upon the actual cash value
of the consideration rc celed by the association therefore. The association
by tlie \ote of its dllectors, miay establish and accumulate rescries out of
cainigs, including a permanent surplus fund as an addition to capital. Net
incoiml in excess of additions to reserves and surpluses so established shall
be distributed to the nmeibeis of the association on the basis of patronage.
Anv distribution of reserves and surpluses at any tune shall be made to
miicmllrs at the time such distribution is ordered on the basis of patronage.
 An\ receipts or dividends front subsidiary corporations or fi.om stock or