2018 Annual Elections
The Candidate Application and Application Packet are now available for our 2018 annual election.
Find out about running for the Board of Trustees and Nominating Committee.
2017 Annual Owner Election Results
Online Votes Cast: 412 Total Votes: 766
Valid paper ballots cast: 354 % of Eligible Voters that voted: 5.7%
Invalid Ballots: 21 Quorum Met: Yes
Board of Trustees: Consumer-Member Seat Elected:
Dean DeCrease: 642 (83.8%) Yes
Board of Trustees: Worker-Member Seat Elected:
Shelby Summer Alexander: 504 (65.8%) Yes
Nick Selzler: 250 (32.6%) No
Nominating Committee: Consumer-Member Seat Elected:
Jimmy Jia: 654 (85.4%) Yes
Nominating Committee: Worker-Member Seat Elected:
Daniel Cobb: 452 (59%) Yes
Justin Taylor: 287 (37.5%) No
Central Co-op is a democratically governed organization. Our owners elect a Board of Trustees and a Nominating Committee to represent them, making the Annual Election a vital element of Central Co-op's governance.
Each active owner has one vote. You help choose other owners who sit on our Board and Nominating Committee, and set the long-term vision and priorities that ultimately guide the everyday efforts of the Co-op.
This year’s Annual Election will take place in-store and online from April 10 to April 22. Voting will also be open at the Annual Meeting on April 23 from 2:45 - 3:30 p.m.
We will have a Voting Party at the store on Monday, April 17 from 5-7 pm. Meet your Board and Nominating Committee candidates, meet other owners, cast your ballots, and enjoy snacks in this celebration of co-op democracy!
Our Annual Owner Meeting and Maker Celebration is a great opportunity for Central Co-op owners' to learn about what's going on at their co-op, vote for the co-op's leadership and meet other active members. This year attendees will also get the opportunity to sample food and drink from some of our favorite local and cooperative makers.
How do I vote?
There are four ways to vote:
Am I eligible to vote?
Consumer-members are eligible to vote if they:
Worker-members are eligible to vote if they are current with their equity and have worked
more than 20 hours a week on average for the previous six months.
How do trustees get seated to the Board?
On the Board, we have one worker-member seat open, and one consumer-member seat open. There are two candidates running for the worker seat, and one for the consumer seat; please vote for up to one candidate for each. Assuming the candidate gets more than 50 percent of the total votes, the candidate who wins the most votes will be seated to a three-year term.
How do the Nominating Committee members get seated?
On the Nominating Committee, we have one consumer-member seat open, and one worker-member seat open. There are two candidates running the worker seat, and one for the consumer seat; please vote for up to one candidate for each. Assuming the candidate gets more than 50 percent of the total votes, the candidate who wins the most votes will be seated to a one-year term.
How does the Solidarity model impact voting?
The simple answer is that there is no change to how you vote. All owners have a vote for all open seats. The seats are now assigned to specific member classes, but voting is not. So please cast a vote in each race.
How do I vote anonymously?
On the print ballot, you are required to write your name, owner number, and signature. If this is a concern for you, you can cast an anonymous ballot by voting online.
The fact that you voted online will be verifiable; however, the contents of your ballot will not be associated with your owner number. If you need assistance with voting online, please contact us at email@example.com.
I shopped at the Tacoma store. Can I still vote while the Co-op looks for another location? How do I vote?
All Central Co-op owners are encouraged to vote in our annual election. Even though there is not currently a physical location in Tacoma, all active members of Central Co-op that are current with their equity are eligible to vote regardless of where they live. For anyone that wants to vote, and isn’t able to come in to the Seattle store or attend the Annual Owner meeting, ballots can be mailed in or votes can be cast online (please see
the first question for more complete details). If you are voting online, please remember that your Central Co-op number is slightly different than your Tacoma Food Co-op member number. All TFC member numbers now begin with ‘406’ and up to three leading zeros, so TFC member # 1 is now Central Co-op member # 4060001.
How do I run for the Board or Nominating Committee in next year’s election?
If you have this question, you’ve already taken the first step – decided that you’re interested. Now that you know you are interested, please contact the Nominating Committee at firstname.lastname@example.org to learn more about what would be involved in your service as well as how to apply. Applications for next year’s election will be available online and in-store in the winter. We have several events scheduled to meet current Trustees and Nominating Committee members in December and January. Thanks for your great question, we hope you decide to apply to run!
What is quorum?
Quorum is the minimum number of votes we need for the election to be valid. At Central Co-op, the quorum is five percent of eligible voters.
We hope you vote in every election!
Our democratic structure is one of the aspects of our business that differentiates us from traditional grocery stores. We encourage all owners to participate in this important part of the life of our Co-op!
Update 12/22/15: Special Election Results Are In!
Total Number of Votes: 1544 (12.7% of Active Owners)
|Proposition||Yes||No||Results||What was the proposition about?|
|PASS||To authorize the Board of Trustees to, in its discretion, complete or abandon the Plan of Merger and to approve of the Plan of Merger as presented.|
|PASS||To approve of the amended Articles of Incorporation and Bylaws, which include the Solidarity Co-op and other changes.|
Thank you owners and staff for getting out the vote--1,544 is a record in the history of our Co-op!
Owners, stay tuned to our information outlets for further details. Watch for next month's Central Register, or sign up for our e-mail newsletter, the Central Beet.
But remember: Shopping at the Co-op tomorrow will be the same as shopping at the Co-op yesterday!
At the Board meeting on November 23rd, 2015, our Board of Trustees called for a Special Meeting and Election to ask our owners consider and vote on two proposals:
In-Store Trustee Tabling
â€‹Trustees will be in the store periodically throughout the election period to answer questions. Check here for the most current dates and times trustees are planning to be in the Co-op.
More information: Read our Board's Vote Notes
The question of merger with Tacoma Food Co-op is whether or not we as owners authorize our Board to make a final decision regarding this matter; understanding that they will do their due diligence, and perform all of their legal duties prior to making this decision, understanding that they will not complete the plan of merger if it will have a negative impact on Central Co-op as it exists now.
The second proposal put forward by the Board is a revision to our current Articles of Incorporation and Bylaws. If approved, they will change our co-op’s structure to that of a solidarity co-op with both consumer members and worker members; it will also enable us to offer our owners non-voting preferred stock.
Both of these proposals are far-reaching in scope and will strengthen the regional economy and cooperative movement, with a dramatic impact on our immediate and long term future. We are fortunate as a Co-op to find ourselves in a moment of strength with visionary leaders, dedicated workers and owners, and enough financial stability to propose these empowering changes.
Our hope is that you, our owners, will support this vision, and remember the day that you were a part of voting for these changes that we believe will have an amazingly positive impact on the livelihoods of thousands of workers, producers, farmers, and households throughout our region.
Over almost 40 years we have strengthened our community and become the great co-op that we are today; we hope that beginning in 2016 we will build even further upon all of our collective achievements and spread the wealth of cooperation to an ever larger cooperative community.
We ask that you take some time over the coming weeks to consider these proposals and then cast your vote on them. There will be information sessions on Saturday, December 12 and Monday, December 14; please RSVP to email@example.com for additional details. Our election ends online and in-store on Sunday, December 20, and you can also vote at our Special Owner Meeting on Monday, December 21 between 6:30pm and 7pm (RSVP information below). Please keep an eye out for printed Voter Guide booklets in the store and your mailbox in the coming weeks.
Thank you for your support, and thank you for voting!
Two food co-ops in the Midwest underwent their own merger in 2012. Watch Michelle Schry, General Manager, talk about the engagement, the participation, and the support that poured from both communities.
Online, mail, and in-store voting closed on December 20. You may still vote at our Special Owner Meeting on December 21, 6:30-7pm at Miller Community Center. Updated 12/21/15
RSVP to the Special Owner Meeting: Call the Co-op: 206-329-1545 - OR - Use the "Event RSVP" form at www.centralcoop.coop/contact or stop by the Central Services desk.
Central Co-op and Tacoma Food Cooperative have agreed to the Plan of Merger to strengthen both organizations and plan for the future of both. The Board of Trustees will complete the Plan of Merger only if, in their opinion, the merger would:
Otherwise, the Board of Trustees will abandon and terminate the Plan of Merger before it becomes effective.
The Board of Trustees recommends adopting amendments to the Articles of Incorporation and Bylaws which include, among other things:
Amended Articles of Incorporation
Articles of Merger
Monday, November 23, 2015
NOTICE OF SPECIAL MEETING OF MEMBERS
TO THE MEMBERS OF CENTRAL COOP:
NOTICE IS HEREBY GIVEN that a Special Meeting of members of Central Coop (the “Company”), will be held Monday, December 21, 2015 at 6:30 pm at the Miller Community Center (330 19th Avenue East, Seattle, WA 98112). The purpose of this meeting is to consider and act on the following proposals:
1. To authorize the Board of Trustees to, in its discretion, complete or abandon the Plan of Merger and to approve of the Plan of Merger as presented.
2. To approve the amendments to the Articles of Incorporation and Bylaws
Additional information regarding these proposals is accompanying this Notice. Members are or may be entitled to dissenter’s rights with respect to Proposal No. 1. A copy of Chapter 24.06.250 of the Revised Code of Washington describing these dissenter’s rights is attached.
BY ORDER OF THE BOARD OF TRUSTEES
Dean DeCrease, President
When to vote
This special Election will take place from November 23 to December 20 and voting will also be open at the Special Owner Meeting on December 21 from 6:30 to 7 p.m.
Four ways to vote
Only active owners in good standing may vote. This means that you:
How will the results be determined?
Both proposals require a super-majority of “yes” votes; so two-thirds of valid ballots cast have to be in favor of the proposal for it to pass.
What is quorum?
Quorum is the minimum number of votes we need for the election to be valid. For this special election, quorum is ten percent of active owners who are eligible to vote.
Q: Why is our Board of Trustees considering a merger with Tacoma Food Co-op?
Merging our cooperative efforts with the Tacoma Food Co-op could help us grow our impact as a community, strengthen our regional food system, and support our cooperative economy. They believe that we would be stronger together. Updated 11/24/15
Q: What is a merger?
If our co-ops were to merge, we would combine our equity and resources and become a two-location co-op. Each consumer-member of Central Co-op and Tacoma Food Co-op would begin as equal members of the combined cooperative. Updated 11/24/15
Q: How would Central Co-op benefit from merging with another Co-op?
Q: Why merge with the Tacoma Food Co-op?
The Tacoma Food Co-op has priorities and a long-term vision that are very closely aligned with our own. In other words, the needs that their community is trying to meet are the same as ours. Their cooperative has dedicated people and strong growth potential, but they lack the key resources that they need to really thrive. Our communities are just 35 miles apart. Updated 11/24/15
Q: Why not just open another Seattle location?
Bringing Central Co-op and the Tacoma Food Co-op together as one would create an organization with greater resources and potential for future growth, with a minimum investment. A second Seattle location would be costly and resource-intensive to build, and Seattle is a very competitive market for natural foods and real-estate. It is also important to note that this is not an either/or proposition and the Board will still consider all opportunities that come along in Seattle. Updated 11/24/15
Q: If the vote passes, will the merger happen immediately?
Nope! Central Co-op’s Board of Trustees is asking you to authorize them to formally complete or abandon the Plan of Merger, and to approve the plan of merger as presented. If the majority of voters vote yes to the authorization, then the Board would hold their own vote on the proposal. The Tacoma Food Co-op has a similar process in place which must succeed in order for this to happen.
Also, there are several conditions of merger which must be met. The Board of Trustees would complete the Plan of Merger only if, in their opinion, the merger would:
Q: How does Tacoma Food Co-op feel about this idea?
They’re excited! Check out the messages from their Board President and General Manager on pages 8 and 9 of the Voter Guide. Updated 11/24/15
Q: If we were to merge, how would my experience as a Seattle Central Co-op owner change?
Not substantially. Our grocery store on Capitol Hill would be the same that you have come to know. The biggest difference would be that you’d be able to shop your own co-op in Tacoma and increase the likelihood of having a stable and productive co-op on Capitol Hill well into the future. Updated 11/24/15
Q: Will our name change?
In all likelihood, the new co-op would retain the Central Co-op brand, but nothing official has been decided at this time. Updated 11/24/15
Q: Will this impact the compensation and benefits of the Tacoma Workers?
Central Co-op has access to a much higher level of benefits than the Tacoma Food
Co-op currently does and we anticipate that Tacoma workers will benefit from the merger. Ideally, Tacoma employees will be brought to parity with Seattle but we don’t have the timeline for that yet. Updated 11/24/15
Q: What happens to the Tacoma Board?
After a process of transition there would be one governing body. The transition will be determined over time. There will be some method in place during the transition period that will ensure that the Tacoma Board has a voice. Updated 11/24/15
Q: What will happen to the members of the Tacoma Food Co-op?
Any natural person holding a membership share in the Tacoma Food Co-op would become a member of the merged co-op. Since the rule is one member, one share – people who held memberships in both co-ops would receive some equity refund. Updated 11/24/15
Q: Will any jobs be lost?
Nope! Our expectation is that this merger will actually help create more good jobs. Updated 11/24/15
Q: Is Tacoma a Union shop?
If the two co-ops do merge, Tacoma employees would have the opportunity to vote to determine whether or not to unionize. Updated 11/24/15
Q: Would a merger affect the status of union workers at Central Co-op in Seattle?
No. Regardless of what the Tacoma workers decide to do, Central Co-op would have the same Union relationships that we currently do. Updated 11/24/15
Q: What will happen to investment at 1600 E. Madison?
In October, we signed a new 20 year lease at our 1600 location, and investment there will remain a priority. Expect to see substantial improvements at this location in 2016. Updated 11/24/15
Q: How does the decision process work on a plan of merger?
The Boards must tentatively agree on a plan of merger, then both memberships (separately) will vote to authorize the boards to decide whether to complete the Plan of Merger and to approve the Plan of Merger. If both memberships so approve and authorize their boards, the boards would then vote on the plan. If both boards exercise the authority granted by the members, articles of merger will be filed with the state, and both co-ops become one surviving company. Updated 11/24/15
Q: What is a solidarity co-op?
A solidarity co-op is a co-op made up of multiple classes of owners. Right now, Central Co-op is a consumer co-op, 100% owned by consumers. As a solidarity co-op, Central Co-op would be owned by consumers and employees. Another term for this is multi-stakeholder co-op. Updated 11/24/15
Q: Why is it good for Central Co-op?
When employees have a greater stake in any company they tend to be more engaged and more motivated. We believe that governance would be made even more thoughtful and stronger by having a more strategic balance of voices at the table. This builds on our distinctive value proposition to our community as a cooperative. No other stores in our area have worker-ownership as a component and this move would expand democratic voice in people’s choice of types of businesses to support. Updated 11/24/15
Q: How would ownership of the Co-op be split?
Consumer-members will own half of the co-op and worker-members will own half of the co-op. Updated 11/24/15
Q: Where did the Board get the idea?
We have staff and members that are familiar with co-ops all over the world that have thrived under this structure. In Quebec and in Europe, this kind of co-op is far more common. Our primary model is Weaver Street Market in North Carolina. We have studied them and believe that this structure suits us better than our current structure. It has always been in our DNA as a co-op to be concerned for employees’ voices and well-being in the business. Updated 11/24/15
Q: How would this impact the management structure of the Co-op?
This change would affect the structure of the Board and our ownership, not the structure of management. Updated 11/24/15
Q: What would a change to the solidarity model mean for employees?
Q: Does this mean that there will be consumer-owners volunteering in the store?
No. Because Central Co-op is a union-shop, we are unable to have in-store volunteering. Liabilities associated with such programs are also a concern. Updated 11/24/15
Q: Who would be eligible to be an employee-owner?
Worker membership would be voluntary. Only people employed at Central Co-op who voluntarily meet the rights and responsibilities of ownership would be eligible for employee ownership. Updated 11/24/15
Q: Would all employees have to be owners?
No, workers would not be required to participate. In keeping with Principle 1, our membership would be open and voluntary, but we hope to have a majority of workers take part as owners of the Co-op. Updated 11/24/15
Q: Would prices increase because of this change?
No. Updated 11/24/15
Q: How does the solidarity structure affect the composition of the Board?
Weaver Street Market in North Carolina is the only existing worker-consumer grocery co-op with membership in National Cooperative Grocers and has a structure very similar to what we are proposing. Using their structure as a starting point, worker owners and consumer owners would be elected to the Board with composition balanced between the two ownership classes. A full board will have three trustees elected from the worker-class, three trustees elected from the consumer class, the chief executive of the Co-op, and two board appointees from the consumer class. Current sitting trustees shall fill out their full elected terms on the board. In the future, one consumer and one worker will be elected each year. All owners, whether worker or consumer will have the right to vote for all elected trustees.
We have added a provision that will allow for Tacoma Food Co-op to have early representation on the Board to preserve institutional knowledge, to enhance the board’s capacity during a transition period and to ensure a representative voice from the Tacoma region of our metropolitan area. The Board will appoint two members of the Tacoma Food Co-op’s leadership to join the Board upon the effect of a merger. Updated 11/24/15
Q: Can you explain the timing of the Special Election?
One key factor in this decision is the timing of our fiscal year end/start. If the merger is finalized, we would like to begin 2016 as a single Co-op. This will make it a lot cleaner and easier administratively for such things as determining Patronage dividends and paying taxes. Our Trustees are confident that the proposals are strong, and we have made the election longer than our regular elections which gives our owners more time to consider these important decisions. Updated 12/7/15
Q: How would patronage change under the new Articles and Bylaws?
Patronage will be handled differently under these new rules. Under the current system, only a percentage of net income attributable to sales may be allocated to owners as patronage. With these amendments, almost all net income would be available for allocation to our membership, increasing the allowable net income from roughly 75% to 100%. This expands the total pool by nearly one-third. So, despite the fact that future system would allocate 50% to workers and 50% to owners, the expanded pool would allow a similar patronage for consumers to what they get now. This would expand the amount of patronage to workers. This system reflects what is in place at other worker/consumer solidarity co-ops around the world. Updated 11/24/15
Q: What is Preferred Stock?
Our Articles are modified to allow for greater economic participation of members through non-voting shares of preferred stock. This is a method of raising capital from owners that is common among co-ops. A similar system funded the opening of Flying Bike Cooperative Brewery, and other grocery co-ops such as the Sacramento Food Co-op, and River Valley Market. Shares may earn only a limited amount of potential interest. This will help our cooperative meet its goals according to Principle 3 (Member Economic Participation). Updated 11/24/15
Q: Why did the Board amend the Co-op’s organizational purpose in the Articles?
In the amended Articles of Incorporation, our organizational purposes have been updated to reflect needs that the Board sees for our cooperative today, and into the future. The new purposes of incorporation are rooted more firmly in the cooperative identity and allow for more innovation as we discover how best to impact our community. Updated 11/24/15
Q: What will be the structure of the Nominating Committee?
The nominating committee will be changed to reflect the solidarity structure and include one consumer, one worker, and an appointed trustee to chair the committee. This will increase participation opportunities, increase communication, and provide input from the Board about skills and experience that are desired for future board candidates. Updated 11/24/15
Q: What officer positions will the new Board have?
The Chief Officer of the Board will be a Chair, and there will be a Vice-Chair. Other offices, such as President and Vice President, have some signatory authority and are required by Law. They will be appointed by the Board and will be operational entities that have no authority over governing matters, similar to Community Food Co-op in Bellingham and PCC. Updated 11/24/15
Q: Is Central Co-op going “Corporate”?
As defined by our Articles of Incorporation, we are a corporation, just like any other cooperative is a corporation, even though we are not a profit maximizing institution like you find on Wall Street. Still, as a corporation, we are required by law to have certain offices (e.g.: President) and those are reflected in the Bylaws. Updated 11/24/15
Q: How is the change to a solidarity structure related to the proposed merger, and why are we voting on them at once?
Both of those things require changes to the Articles and Bylaws, as does the adding of preferred stock. For efficiency and best results, the Board decided to pursue all of the changes together. Not only is it more efficient to make these changes together, but it also means that our cooperative becomes the best possible co-op we can be. Updated 11/24/15
REVISED CODE OF WASHINGTON
Exercise of right of dissent – rights and liabilities
Any member or shareholder electing to exercise such right of dissent shall file with the corporation, prior to or at the meeting of members and shareholders at which such proposed corporate action is submitted to a vote, a written objection to such proposed corporate action. If such proposed corporate action be approved by the required vote and such member or shareholder shall not have voted in favor thereof, such member or shareholder may, within ten days after the date on which the vote was taken, make written demand on the corporation, or, in the case of a merger or consolidation, on the surviving or new corporation, domestic or foreign, for payment of the fair value of such member's membership or of such shareholder's shares, and, if such proposed corporate action is effected, such corporation shall pay to such member, upon surrender of his or her membership certificate, if any, or to such shareholder, upon surrender of the certificate or certificates representing such shares, the fair value thereof as of the day prior to the date on which the vote was taken approving the proposed corporate action, excluding any appreciation or depreciation in anticipation of such corporate action. Any member or shareholder failing to make demand within the ten day period shall be bound by the terms of the proposed corporate action. Any member or shareholder making such demand shall thereafter be entitled only to payment as in this section provided and shall not be entitled to vote or to exercise any other rights of a member or shareholder.
No such demand shall be withdrawn unless the corporation shall consent thereto. The right of such member or shareholder to be paid the fair value of his or her membership or shares shall cease and his or her status as a member or shareholder shall be restored, without prejudice to any corporate proceedings which may have been taken during the interim, if:
(1) Such demand shall be withdrawn upon consent; or
(2) The proposed corporate action shall be abandoned or rescinded or the members or shareholders shall revoke the authority to effect such action; or
(3) In the case of a merger, on the date of the filing of the articles of merger the surviving corporation is the owner of all the outstanding shares of the other corporations, domestic and foreign, that are parties to the merger; or
(4) A court of competent jurisdiction shall determine that such member or shareholder is not entitled to the relief provided by this section.
Within ten days after such corporate action is effected, the corporation, or, in the case of a merger or consolidation, the surviving or new corporation, domestic or foreign, shall give written notice thereof to each dissenting member or shareholder who has made demand as herein provided, and shall make a written offer to each such member or shareholder to pay for such shares or membership at a specified price deemed by such corporation to be the fair value thereof. Except in cases where the fair value payable to dissenters is fixed in the articles of incorporation or pursuant to RCW 24.06.255, such notice and offer shall be accompanied by a balance sheet of the corporation in which the member holds his or her membership or the dissenting shareholder holds shares, as of the latest available date and not more than twelve months prior to the making of such offer, and a profit and loss statement of such corporation for the twelve months' period ended on the date of such balance sheet.
If the fair value payable to dissenting members or shareholders is fixed in the articles of incorporation or pursuant to RCW 24.06.255, or if within thirty days after the date on which such corporate action was effected the fair value of such shares or membership is agreed upon between any such dissenting member or shareholder and the corporation, payment therefor shall be made within ninety days after the date on which such corporate action was effected, upon surrender of the membership certificate, if any, or upon surrender of the certificate or certificates representing such shares. Upon payment of the agreed value the dissenting member or shareholder shall cease to have any interest in such membership or shares.
If the fair value payable to dissenting members or shareholders is not fixed in the articles of incorporation or pursuant to RCW 24.06.025, and within such period of thirty days a dissenting member or shareholder and the corporation do not so agree, then the dissenting member or shareholder shall be entitled to make written demand to the corporation, within sixty days after the date on which such corporate action was effected, requesting that the corporation petition for a determination of the fair value by a court. If such a demand is not timely made on the corporation, the right of such member or shareholder to demand to be paid the fair value of his or her membership or shares shall be forfeited. Within thirty days after receipt of such a written demand from any dissenting member or shareholder, the corporation shall, or at its election at any time within ninety days after the date on which such corporate action was effected may, file a petition in any court of competent jurisdiction in the county in this state where the registered office of the corporation is located praying that the fair value of such membership or shares be found and determined. If, in the case of a merger or consolidation, the surviving or new corporation is a foreign corporation without a registered office in this state, such petition shall be filed in the county where the registered office of the domestic corporation was last located. If the corporation shall fail to institute the proceeding as herein provided, any dissenting member or shareholder may do so in the name of the corporation. All dissenting members and shareholders, wherever residing, shall be made parties to the proceeding as an action against their memberships or shares quasi in rem. A copy of the petition shall be served on each dissenting member and shareholder who is a resident of this state and shall be served by registered or certified mail on each dissenting member or shareholder who is a nonresident. Service on nonresidents shall also be made by publication as provided by law. The jurisdiction of the court shall be plenary and exclusive. All members and shareholders who are parties to the proceeding shall be entitled to judgment against the corporation for the amount of the fair value of their shares. The court may, if it so elects, appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers shall have such power and authority as shall be specified in the order of their appointment or an amendment thereof. The judgment shall be payable only upon and concurrently with the surrender to the corporation of the membership certificate, if any, or of the certificate or certificates representing such shares. Upon payment of the judgment, the dissenting shareholder or member shall cease to have any interest in such shares or membership.
The judgment shall include an allowance for interest at such rate as the court may find to be fair and equitable in all the circumstances, from the date on which the vote was taken on the proposed corporate action to the date of payment.
The costs and expenses of any such proceeding shall be determined by the court and shall be assessed against the corporation, but all or any part of such costs and expenses may be apportioned and assessed as the court may deem equitable against any or all of the dissenting members and shareholders who are parties to the proceeding to whom the corporation shall have made an offer to pay for membership or shares if the court shall find that the action of such members or shareholders in failing to accept such offer was arbitrary or vexatious or not in good faith. Such expenses shall include reasonable compensation for and reasonable expenses of the appraisers, but shall exclude the fees and expenses of counsel for and experts employed by any party; but if the fair value of the memberships or shares as determined materially exceeds the amount which the corporation offered to pay therefor, or if no offer was made, the court in its discretion may award to any member or shareholder who is a party to the proceeding such sum as the court may determine to be reasonable compensation to any expert or experts employed by the member or shareholder in the proceeding.
Within twenty days after demanding payment for his or her shares or membership, each member and shareholder demanding payment shall submit the certificate or certificates representing his or her membership or shares to the corporation for notation thereon that such demand has been made. His or her failure to do so shall, at the option of the corporation, terminate his or her rights under this section unless a court of competent jurisdiction, for good and sufficient cause shown, shall otherwise direct. If membership or shares represented by a certificate on which notation has been so made shall be transferred, each new certificate issued therefor shall bear a similar notation, together with the name of the original dissenting holder of such membership or shares, and a transferee of such membership or shares shall acquire by such transfer no rights in the corporation other than those which the original dissenting member or shareholder had after making demand for payment of the fair value thereof.