Act No. 84 (H.21). Commerce and trade; business organizations

An act relating to the mutual benefit enterprise act

This act creates Title 11C, governing the formation and operation of a new business entity type, the mutual benefit enterprise, which blends features of traditional cooperative principles with structural features of limited liability companies and corporations. By law, the mutual benefit enterprise must be majority owned and operated by patron members, but the act allows the addition of investor members who may participate in the ownership, operation, and distribution of profits. The act is based on the National Conference of Commissioners on Uniform State Laws' model act, the "uniform limited cooperative association act."

Effective Date: April 20, 2012