Vermont § 1090 Internal capital accounts; recall or redemption of shares; interest; collective reserve account

Vermont Statutes

§ 1090 — Internal capital accounts; recall or redemption of shares; interest; collective reserve account

Vermont § 1090

Title 11Title 11: Corporations, Partnerships and Associations

Ch. 8Chapter 008: Worker Cooperative Corporations

This text of Vermont § 1090 (Internal capital accounts; recall or redemption of shares; interest; collective reserve account) is published on Counsel Stack Legal Research, covering Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Vt. Stat. Ann. tit. 11, § 1090 (2026).

Text

(a)A worker cooperative may provide in its bylaws that it shall operate as an internal capital account cooperative. Any worker cooperative may establish through its articles 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.

(b)The articles of incorporation or bylaws of a worker 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 such redemption would result in the liability of any director or officer of the worker cooperative under 11A V.S.A. § 8

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(a) A worker cooperative may provide in its bylaws that it shall operate as an internal capital account cooperative. Any worker cooperative may establish through its articles 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.
(b) The articles of incorporation or bylaws of a worker 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 such redemption would result in the liability of any director or officer of the worker cooperative under 11A V.S.A. § 8.33.
(c) The articles of incorporation or bylaws may provide for the worker cooperative to pay or credit interest on the balance in each member’s internal capital account.
(d) The articles of incorporation or bylaws may authorize assignment of a portion of retained net earnings and net losses to a collective account. Earnings assigned to the collective account may be used for any and all corporate purposes as determined by the board of directors. (Added 1985, No. 46, § 1; amended 2023, No. 85 (Adj. Sess.), § 23, eff. July 1, 2024.)