§ 17-10-115 — Apportionment of net profits by directors of corporation with capital stock

(a) The directors in any cooperative association organized
under this article may set aside a portion of net income to
create or maintain a capital reserve as they see fit or may set
aside none, in their discretion. In addition to a capital
reserve, the board may:
(i) Set aside an amount not to exceed five percent
(5%) of the annual net income of the cooperative association
for:
(A) Promoting and encouraging cooperative
organization;
(B) Promotion, education or research activities
which are beneficial to the cooperative, its members and
products; and
(C) Any other endeavor or effort which the board
deems is in the best interests of the cooperative or its
members.
(ii) Establish and accumulate reserves for new
buildings, machinery and equipment depreciation, losses and
other purposes.
(b) Repealed By Laws 2001, Ch. 144, § 4.