CHAPTER 100

An Act to amend and reenact § 56-493, as amended, of the Code of
Virginia, relating to membership of telephone co-operatives; how
members shall be entitled to vote; election of officers; nonprofit
operation.

[H 259]

Approved March 2, 1968

Be it enacted by the General Assembly of Virginia:

1. That § 56-493, as amended, of the Code of Virginia be amended and
reenacted as follows:

§ 56-493. Membership; nonprofit operation.—A co-operative shall
issue to its members certificates of membership. Only members shall be
entitled to vote * at the meetings of the members of the co-operative.
A member entitled to vote may vote in person or, unless the articles of
tncorporation or the bylaws otherwise provide, may vote by proxy exe-
cuted in writing by the member, appointing some other member to cast
his vote, or to vote by his duly authorized attorney-in-fact, but such
appointment shall be limited to other members. No proxy shall be valid
after eleven months from its date unless otherwise provided in the proxy.
When directors or officers are to be elected by members, the bylaws may
provide that such elections may be conducted by mail. The liability of each
member shall be limited to the unpaid portion of his membership fee or
subscription to capital stock, and any unpaid bills for telephone service
from the co-operative. The equity of members of a nonstock co-operative
shall be in proportion to the revenue paid the co-operative by each mem-
ber. A co-operative shall be operated on a nonprofit basis for the mutual
benefit of its members. The bylaws of the co-operative or its contract with
its members shall contain such provisions relative to the disposition of
revenues and receipts as may be necessary and appropriate to establish
and maintain its nonprofit and co-operative character.

2. An emergency exists and this act is in force from its passage.