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<br />,,"", ' <br />L, <br /> <br />00 <br />r... <br />'.,..:.) <br />CJ <br />,-- <br />,-' <br /> <br />. <br /> <br />. <br /> <br />The statutory right of the corporation to use shares of its <br /> <br />stock in payment of damages, by necessary implica.tion, means that <br /> <br />a non-consenting lateral ditch right owner could be required to <br /> <br />become a stockholder of the corporation and thus subject to its <br /> <br />lawful authority. (See, however, footnote 6, infra) <br /> <br />A lateral ditch corporation could be organized under the Ditch <br /> <br />and Reservoir Companies Act (Section 7-42-101 et seq., C.R.S.) or <br /> <br />the Colorado Nonprofit Corporation Act (Section 7-20-101 et seq., <br /> <br />C.R.S.) and possess all the powers of a Ditch and Reservoir <br /> <br />Company. Section 7-42-101 (2), C.R.S. The Ditch and Reservoir <br /> <br />Companies Act grants the power to make assessmenl:s on issued stock <br /> <br />in order to defray expenses of operation and maintenance. section <br /> <br />7-42-104, C.R.S. Many irrigation systems in the State of Colorado <br /> <br />are now operated and for many years have been operated by mutual <br /> <br />ditch and reservoir companies organized under the said Act. <br /> <br />A disadvantage of a new lateral ditch corporation as a <br /> <br />Proposed organization, is that, apparently, at least initially, a <br /> <br />lateral ditch corporation could only be organized with respect to <br /> <br />one lateral. After the formation and acquisition of needed <br /> <br />lateral rights of way, two or more lateral ditch corporations <br /> <br />might consolidate under appropriate provisions of the Corporation <br /> <br />Code, but such procedure would necessitate consent of the <br /> <br />stockholders of the various corporations which might prove <br /> <br />difficult to obtain. <br /> <br />-23- <br />