§ 93 — Internal capital account cooperatives

New York § 93

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

Text

§ 93. Internal capital account cooperatives. 1. A worker cooperative\nmay provide in its by-laws that it shall operate as an internal capital\naccount cooperative. An internal account cooperative is a worker\ncooperative whose entire net book value is reflected in internal capital\naccounts, one for each member, and a collective reserve account, and in\nwhich no persons other than members own capital stock. In an internal\ncapital account cooperative, each member shall have one and only one\nvote in any matter requiring voting by stockholders.\n 2. An internal capital account cooperative shall credit the paid-in\nmembership fee and additional paid-in capital of a member to the\nmember's internal capital account, and shall also record the\napportionment of net retained proceeds or net losses to the members in\naccordance with patronage by appropriately crediting or debiting the\ninternal capital accounts of members. The collective reserve account in\nan internal capital account cooperative shall reflect any paid-in\ncapital, net losses and net retained proceeds not allocated to\nindividual members.\n 3. In an internal capital account cooperative, the balances in all the\nindividual internal capital accounts and collective reserve account, if\nany, shall be adjusted at the end of each accounting period so that the\nsum of the balances is equal to the net book value of the worker\ncooperative.\n 4. Section six hundred twenty-three of the business corporation law\nshall not apply to an internal capital account cooperative.\n