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Bill Analysis

Legislative Service Commission

H.B. 288
125th General Assembly
(As Introduced)

The bill makes various changes in the law governing cooperatives, which generally may be described as nonprofit corporations that often are organized so that their members, who control the cooperatives, may benefit from economies of scale by banding together. The changes are summarized below.
Please note that the term "association" is used to refer to a cooperative organized under Ohio law, "foreign association" refers to a cooperative organized under the laws of another state, the District of Columbia, or the United States, and "cooperative," unless otherwise indicated, refers to both cooperatives organized under Ohio law and foreign cooperatives (sec. 1729.01(C), (F), and (H)).
Expansion of applicability of statutes to foreign cooperatives
(secs. 1729.01(H), (L), (M), and (O), 1729.18, 1729.35, 1729.36(C)(3), 1729.69(A)(1), and 1729.85) Indemnification of person acting on behalf of association
(secs. 1729.01(N), 1729.031, and 1729.23) Principal place of business
Authorization of out-of-state principal place of business
(secs. 1729.07(A)(3), 1729.47, 1729.55(F)(3), 1729.58(H), 1729.59(B), and 1729.61(A) and (D)) Elimination of term "principal office"
(secs. 1729.55(F)(3), 1729.56, 1729.58(H), 1729.59(A), and 1729.61(A) and (D)) Clarification that associations are corporations
(secs. 1729.01(G) and (H), 1729.02, 1729.04(B), 1729.06, 1729.11, 1729.36, 1729.38(C), and 1729.42) Documents governing associations
Restatement of articles of incorporation
(sec. 1729.08) Bylaws
(sec. 1729.16) Certificate of merger or consolidation
(sec. 1729.38(A)) Certificate of dissolution
(sec. 1729.56) Authority of association
(sec. 1729.03) Board of directors
(secs. 1729.22 and 1729.28) Vice chairpersons
(sec. 1729.26) Meetings
(secs. 1729.07(A)(6), 1729.16(A), and 1729.19) Winding up of voluntarily dissolved association's affairs
(sec. 1729.58) Names
(sec. 1729.04) Definition of "producer"
(sec. 1729.01(R)) Technical changes
(secs. 1729.46 and 1729.49 and various other sections) HISTORY

09-25-03p. 1087