§ 12656.5. — 12656.5. (Added by Stats. 2015, Ch. 192, Sec. 25.)

California § 12656.5.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 3.
• Title 1.: DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES
• Part 2.: PART 2. COOPERATIVE CORPORATIONS
• Ch. 17.: CHAPTER 17. General Provisions Relating to Dissolution

Text

(a)
After complying with the provisions of Section 12653, and except as otherwise provided in Section 12655, upon dissolution of a worker cooperative the majority of the unallocated capital account shall be distributed to members on the basis of any of the following, as specified in the articles of incorporation or bylaws of the cooperative:
(1)
Patronage.
(2)
Capital contributions.
(3)
A combination of patronage and capital contributions.
(b)
A worker cooperative is authorized to include patronage provided by
past and current members in its distribution of the unallocated capital account.
(c)
Subdivision (a) shall not apply to any amounts in the indivisible reserve account. Any amount in the indivisible reserve account shall, upon dissolution, be allocated to a cooperative development organization designated in the articles of incorporation or the bylaws.

Legislative History

Added by Stats. 2015, Ch. 192, Sec. 25. (AB 816) Effective January 1, 2016.