7106 - Election of an existing nonprofit corporation to become a cooperative corporation.

     § 7106.  Election of an existing nonprofit corporation to become                a cooperative corporation.        (a)  General rule.--Any nonprofit corporation not organized     on the cooperative principle may become a nonprofit cooperative     corporation under this chapter by:            (1)  Adopting a plan of conversion adjusting its affairs        so as to comply with the requirements of this chapter        applicable to cooperative corporations.            (2)  Filing articles of amendment which shall contain, in        addition to the requirements of section 5915 (relating to        articles of amendment):                (i)  A statement that the corporation elects to            become a cooperative corporation.                (ii)  The provisions required by section 7102(a)            (relating to cooperative corporations generally) to be            set forth in the articles of a cooperative corporation.                (iii)  Such other changes, if any, that may be            desired in the articles.        (b)  Procedure.--The plan of conversion of the corporation     into a cooperative corporation (which plan shall include the     amendment of the articles required by subsection (a)) shall be     adopted in accordance with the requirements of Subchapter B of     Chapter 59 (relating to amendment of articles) except that:            (1)  The members of every class shall be entitled to vote        on the plan regardless of any limitations stated in the        articles or bylaws, or in a document evidencing membership,        on the voting rights of any class.            (2)  The plan must be approved by two-thirds of the votes        cast by the members of each class.            (3)  The plan shall not impose any additional liability        upon any existing patron of the business of the corporation,        whether or not that person becomes a member of the        corporation pursuant to the plan, unless the patron expressly        assumes such liability.     (Dec. 19, 1990, P.L.834, No.198, eff. imd.)        1990 Amendment.  Act 198 added section 7106.