Stock/Equity Policies

 

Class A Stock is stock that is purchased by SCG members, with approval of the Board of Directors, at any time it is available. No household shall be permitted to own more than 60 shares of Class A Stock with household meaning husband, wife, and minor children. When a minor becomes of age and is not eligible for membership in SCG, the stock will be redeemed under the regular redemption policy.

The holder can redeem Class A Stock in the following manner:

  1. By presenting the stock certificate to the office, immediate payment will be issued as long as the Cooperative is in a sound financial position.
  2. Transferring of stock shall be subject to the approval of the Board of Directors at a regular monthly meeting.
  3. In case a stock certificate is lost, the member may obtain an affidavit from the office. After completing the affidavit, he may submit the affidavit for payment of the lost stock certificate.

Class C Stock and Allocated Retained Earnings are acquired through the issuance of patronage refunds.

Class C Stock and Allocated Retained Earnings can be redeemed in the following manner:

  1. When a patron quits farming and will no longer be actively participating in any farming operations or receiving any further farm income derived from cash rents or grain sales.
  2. When a patron moves from the area and will no longer be delivering grain to SCG.
  3. To the estate of any patron due to death. If a patron fits any of the above categories but still has grain on store in the facility to be sold at a later date, the equity is still eligible for redemption at such time as stated above and any further patronage refund will be paid 100% in cash.
  4. A corporation that has Class C Stock is eligible to have a part of this redeemed in the amount equal to the proportionate share of the stockholder anytime the stockholder meets any of the above requirements.
  5. When called by the Board of Directors to revolve such stock.
  6. There may be other isolated situations that will have to be discussed and approved by the Board of Directors at the particular time that the situation arises.

Persons eligible for redemption of Class A or Class C Stock during the fiscal year will participate in stock dividends declared from July 31st of the preceding year.

Class C Stock is only transferable between husband and wife.