Nonpatron membership interest

A nonpatron membership interest is a membership interest that does not require the holder to conduct patronage business for or with the cooperative in order to receive financial rights or distributions.

Statutory definition#

This is a term defined by statute. Section 308B.005, subdivision 19, defines it for purposes of chapter 308B ^{P1, subd. 19}. Our paraphrase is above; the statute's own words control and are in § 308B.005.

These interests require authorization in the articles. Each acquiring member must sign a member control agreement or agree to bylaws describing the required rights and obligations § 308B.601, subd. 5 ^P1. The patron-minimum rules measure different things: § 308B.601, subdivision 3, covers financial rights, while § 308B.721 covers annual profit allocations and distributions; their lower floors require their respective statutory authorizations. See Patron membership interest and Raise member equity and capital.