Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 75-97

1975-1 C.B. 167

Sec. 521

IRS Headnote

Farmers' cooperative; proxy voting. The exempt status of a farmers' cooperative will not be jeopardized if it permits proxy voting by shareholders.

Full Text

Rev. Rul. 75-97

A farmers cooperative marketing and purchasing association otherwise exempt from taxation under section 521 of the Internal Revenue Code of 1954 has a provision in its bylaws that states that the vote of any shareholder in any annual or special meeting may be cast in person or by proxy by the holder of such share of stock. Such proxy may be revoked at any time by the holder of the share of stock.

Held, a person acting as proxy to vote a share or shares of stock is an agent of the shareholders and the cooperative will not be denied exemption solely by reason of such proxy voting.