§ 92 — Internal capital accounts; recall or redemption of shares; interest; collective reserve account

New York § 92

• Jurisdiction: New York
• Law CCO: Cooperative Corporations
• Art. 5-A: Worker Cooperative Corporations

Text

§ 92. Internal capital accounts; recall or redemption of shares;\ninterest; collective reserve account. 1. Any worker cooperative may\nestablish through its certificate of incorporation or by-laws a system\nof internal capital accounts, to reflect the book value and to determine\nthe redemption price of membership shares, capital stock and written\nnotices of allocation. As used in this article, "written notice of\nallocation" means a written instrument which discloses to a member the\nstated dollar amount of such member's patronage allocation and the terms\nfor payment of that amount by the worker cooperative.\n 2. The certificate of incorporation or by-laws of a worker cooperative\nmay permit the periodic redemption of written notices of allocation and\ncapital stock, and must provide for recall and redemption of the\nmembership share upon termination of membership in the cooperative. No\nredemption shall be made if such redemption would result in the\nliability of any director or officer of the worker cooperative under\nsection seven hundred nineteen and section seven hundred twenty of the\nbusiness corporation law.\n 3. The certificate of incorporation or by-laws may provide for the\nworker cooperative to pay or credit interest on the balance in each\nmember's internal capital account.\n 4. The certificate of incorporation or by-laws may authorize\nassignment of a portion of net retained proceeds and net losses to a\ncollective reserve account. Net retained proceeds assigned to the\ncollective reserve account may be used for any and all corporate\npurposes as determined by the board of directors.\n