This article was published in the October/November 2013 Wedge newsletter. The following information may be outdated.

2013 Election Articles and Bylaws Amendments:

The Board of Directors recommends the following changes to the Wedge Co-op Articles and Bylaws. A "Yes" vote approves the changes. A "No" vote leaves the Articles and Bylaws as they are now.

Articles of Incorporation

The recommended changes in Article V, Sections 1 and 4 increase the number of Class B and C stock shares the co-op is allowed to issue; increase the price of Class C stock shares from $100 to $500; and allow the board to decide if future dividends on Class C stock will be cumulative or not.

The increase in the number of Class B stock shares is necessary due to the growth of our co-op membership and the accumulation of Class B equity shares over the years.

The change in Class C stock share value, number of shares allowed, and the option to pay cumulative dividends prepares our co-op to raise funds for future improvements and expansions. Class C stock dividends can only be issued in profitable years, although a dividend may be declared in a year that is not profitable. Dividends that are declared but not paid are referred to as cumulative dividends and may be paid when the co-op returns to profitability.

Recommended changes are in italics. The current wording to be replaced is struck through.

ARTICLE V. CAPITAL.

Section 1. The amount of authorized capital stock of the cooperative shall be eleven million dollars ($11,000,000) forty million five hundred thousand dollars ($40,500,000) and shall be divided into three classes of stock. Class A stock shall consist of fifty thousand (50,000) shares of voting stock with a par value of ten dollars ($10.00) per share for a total of five hundred thousand dollars ($500,000). Class B stock shall consist of nine hundred fifty thousand (950,000) two million (2,000,000) shares of non-voting stock with a par value of ten dollars ($10.00) per share for a total of nine million five hundred thousand dollars ($9,500,000) twenty million dollars ($20,000,000). Class C stock shall consist of ten thousand (10,000) forty thousand (40,000) shares of non-voting stock with a par value of one hundred dollars ($100.00) five hundred dollars ($500.00) per share for a total of one million dollars ($1,000,000) twenty million dollars ($20,000,000).

Section 4. Class C stock may be issued to holders of Class A stock. Class C stock shall have no voting power. Dividends may be paid on Class C stock at the discretion of the Board of Directors, not to exceed eight percent (8%) per annum. Dividends, if declared, shall not be cumulative. Dividends, if declared, may (but need not) be cumulative, as determined by the Board of Directors at the time the dividend is declared.

Bylaws

In Article IV, Section 7, replace the term "General Manager" with "Chief Executive Officer" in recognition that the job changed with the growth of the co-op to a multi-unit business, and the term "Chief Executive Officer" is more accurate than "General Manager."

Article IV. OFFICERS

Section 7. General Manager Chief Executive Officer. The Board of Directors shall employ and supervise a General Manager Chief Executive Officer of this cooperative. The General Manager Chief Executive Officer shall have general charge of the ordinary and usual business operations of this cooperative subject to the direction and approval of the Board of Directors. The General Manager Chief Executive Officer shall properly maintain all business records and accounts of this cooperative. He or she shall provide annual and periodic reports in a form and manner prescribed by the Board of Directors. The General Manager Chief Executive Officer shall employ and discharge employees subject to direction and guidelines approved by the Board. The General Manager Chief Executive Officer shall handle and account for all monies belonging to this cooperative which come into his or her possession in the manner and form prescribed by the Board of Directors.