Montana Attorney General Opinion 16-348

Opinion No. 348. Corporations-Cooperative Associa- tions-Cooperative Marketing Act, Applications Of. HELD: The rights and limitations of the rights of corporations and as- sociations under the cooperative mar- keting act are generally discussed. September 11, 1936. Hon. Sam W. Mitchell Secretary of State The Capitol You ask for an opinion relative to Section 6447, R. C. M. 1935, and that provision thereof which states that OPINIONS OF THE ATTORNEY GENERAL 345 "any corporation or association or- ganized under previous and existing statutes" may adopt the provisions of the cooperative marketing act (Chap- ter 40 of the Civil Code). Your spe- cific questions and answers thereto are as follows: "1. Does this section, in your opinion contemplate that any cor- poration incorporated under the gen- eral statutes (Section 5900 et seque) may by following the procedure set forth in Section 6447 become a co- operative marketing association?" The statute states that any corpor- ation, etc., may take advantage of this section. The word "any" is as broad a term :.lS could be used and we are not justified in unduly limiting same. However, there are certain limitations which must apply. First, an organization cannot by changing its form become a cooperative mar- keting organization unless it complies fully with the cooperative marketing law. A second limitation certainly ap- plies in this respect: That a corpora- tion whose purposes are totally re- moved and entirely different from the purposes for which a cooperative mar- keting association could be formed cannot change its form to become a cooperative marketing association. On the other hand, I think that great liberality should be used in permitting the changing of other organizations to cooperative marketing associations. "2. Does this section, in your opinion, contemplate that an asso- ciation incorporated under the co- operative association laws (Section 6375 et seque) may become a coop- erative marketing association under the terms of Section 6447?" Answer: Yes, provided that such association complies with the law in relation to cooperative marketing as- sociations. "3. Does this section, in your opinion, contemplate that building and loan associations, railroad cor- porations, banks, religious and fra- ternal societies may become coopera- tive marketing associations under the terms of Section 6447?" This question has, to some extent, been answered in the answer given to question No.!. I believe that the or- ganizations mentioned in this para- graph could not be converted into co- operative marketing associations. "4. May corporations organized after the enactment of Chapter 40 of the Civil Code under other provisions than those of the cooperative mar- keting act take advantage of Sec- tion 6447?" Answer: Yes. It appears to me that the privileges of this section are not limited to such corporations as were organized prior to the enact- ment of Chapter 40 of the Civil Code.