Ownership
As a co-op, Agri-Mark is a membership organization incorporated in Delaware on April 21, 1980. The members of the Agri-Mark cooperative, who supply Agri-Mark's equity capital and directly elect its directors, are not stockholders of record and therefore have no right under Delaware statutory law to inspect the corporation's books and records. Only the board of directors hold a share of stock and so are owners under Delaware law.
The co-op retains much of the excess profit, up to $150,000 per farmer, as equity in the form of non-interest bearing loans. For farmers departing the co-op, this equity is repaid over seven years. Dividends in excess of the retained equity are returned to the members.
The Delaware stock corporation signs yearly marketing agreements with the farmers who produce milk. They can decline to re-sign any producer without reason at the end of the contract.
Read more about this topic: Cabot Creamery
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