Kanokla Annual Meeting Recap

Kanokla Members Approve Key Bylaw Updates

for Clarity and Tax Efficiency

Kanokla members have approved several important changes to the organization's Bylaws aimed at improving clarity, consistency, and financial efficiency. The approved amendments affect multiple sections, including updates that reflect evolving operational and legal needs.

Key Changes Include:

Article I, Section 1.4:

Redundant language regarding members providing capital was removed, as this is already addressed in Article VIII, Section 8.2.

Article II, Section 2.1:

Clarified that a member’s termination does not affect their rights to capital credits earned before their membership ended.

Article III, Section 3.6:

Corrected terminology, replacing the word "patron" with "member" to ensure proper usage.

Article VIII, Sections 8.1 and 8.2:

Significant revisions were made to allow Kanokla to treat excess revenue from non-member customers as capital, similar to how it is handled for members—offering potential tax advantages.

Key aspects of this change include:

• Defining “patron” to include both member and non-member customers who provide capital and are eligible for capital credits, as determined by the Board.

• Stating clearly that non-member patrons do not have governance rights within the cooperative.

• Enabling the Board to create classes of patrons in the same way it can for members.

• Updating references from “members” to “patrons” where applicable in relation to capital credits.

General Revisions:

Additional minor edits were made throughout the Bylaws to correct spelling, grammar, and typographical errors without changing the meaning of the content.

These changes are designed to ensure Kanokla’s governance documents are both accurate and aligned with the cooperative’s operational and financial strategies.