§ 7-6.2-10 — § 7-6.2-10. Internal capital accounts — Recall or redemption of shares — Interest — Collective reserve account.

§ 7-6.2-10. Internal capital accounts — Recall or redemption of shares — Interest — Collective reserve account.

(a) Any workers' cooperative may establish through its certificate of incorporation or bylaws a system of internal capital accounts, to reflect the book value and to determine the redemption price of membership shares, capital stock, and written notices of allocation. As used in this section, "written notice of allocation� means a written instrument that discloses to a member the stated dollar amount of the member's patronage allocation, and the terms for a payment amount by the workers' cooperative.

(b) The certificate of incorporation or bylaws of a workers' cooperative may permit the periodic redemption of written notices of allocation and capital stock, and must provide for recall and redemption of the membership share upon termination of membership in the cooperative. No redemption shall be made if the redemption would result in the liability of any director or officer of the workers' cooperative under §§ 7-1.2-801 — 7-1.2-814.

(c) The certificate of incorporation or bylaws may authorize assignment of a portion of net retained proceeds and net losses to a collective reserve account. Net retained proceeds assigned to the collective reserve account may be used for any and all corporate purposes as determined by the board of directors.

Legislative History

P.L. 2017, ch. 370, § 1; P.L. 2017, ch. 378, § 1.