Page:United States Statutes at Large Volume 54 Part 1.djvu/523

 54 STAT.] 76TH CONG. , 3D SESS.-CH. 397-JUNE 19, 1940 ARTICLE XI-DISSOLuTiON SEC. 36. DISSOLTrroN.- An association may, at any regular or special meeting legally called, be directed to dissolve by a vote of two-thirds of the entire membership. By a vote of a majority of the members voting three of their number shall be designated as trus- tees, who shall, on behalf of the association and within a time fixed in their designation or within any extension thereof, liquidate its assets, and shall distribute them in the manner set forth in this section. A suit for involuntary dissolution of an association organ- ized under this Act may be instituted for the causes and prosecuted in the manner set forth in sections 786 through 791, both inclusive, and sections 794 through 797, both inclusive, of the Act entitled "An Act to establish a Code of Law for the District of Columbia". approved March 3, 1901: Provided, That any distribution of assets shall be in the manner set forth in this section. In case of any dissolution of an association, its assets shall be distributed in the following manner and order: (1) By paying its debts and expenses; (2) by returning to the members the par value of their shares or of their membership certificates, returning to the subscribers the amounts paid on their subscriptions, and returning to the patrons the amount of savings returns credited to their accounts toward the purchase of shares or membership certificates; and (3) by dis- tributing any surplus in either or both of the following ways as the articles may provide- (a) Among those patrons who have been members or subscribers at any time during the past six years, on the basis of their patronage during that period; (b) As a gift to any consumers' cooperative association or other nonprofit enterprise which may be designated in the Articles. ARTICLE XII-PENALTIES SEC. 37. USE OF NAME "COOPERATIVE"; PENALTY.-- Only (1) associa- tions organized under this Act, (2) groups organized on a cooperative basis under any other law of the District of Columbia, and (3) for- eign corporations operating on a cooperative basis and authorized to do business in the District of Columbia under this or any other law of the District of Columbia shall be entitled to use the term "coopera- tive", or any abbreviation or derivation thereof, as part of their business name, or to represent themselves, in their advertising or otherwise, as conductingbusiness on a cooperative basis. Any person, firm, or corporation violating the above provision shall upon conviction of such offense be punished by a fine of not less than $25 nor more than $200, with an additional fine of not more than $200 for each month during which a violation occurs after the first month, or by imprisonment for not less than thirty days nor more than one year, or by both such fine and imprisonment. The district attorney of the United States for the District of Columbia, or any individual, or association, or group organized on a coopera- tive basis, may sue to enjoin an alleged violation of this section. Should a court of competent jurisdiction decide that any person, firm, or corporation using the name "cooperative" prior to this Act, 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 association law of the District of Columbia" in the same kind of type, and in letters not less than two-thirds as large, as those used in the term "cooperative". SEC. 38. PROMOTION EXPENSES; LIMrTATIONS; PENALT.- - An associa- tion shall not, directly or indirectly, use any of its funds, nor issue 489 Dissolution. Involuntary dissolu- tion. 31 Stat. 1319. 5D.C. Code§§ 409-414, 416419. Provoo. Distribution of as- sets. Useof term "cooper- ative." Punishment for vio- lation. Firm, etc., using name "cooperative" prior to this Act. Promotion expenses; limitations; penalty.

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