Wyoming § 17-10-234 Allocations and distributions to patron
members

Wyoming Statutes

§ 17-10-234 — Allocations and distributions to patron members

Wyoming·Title 17 Corporations, Partnerships and Associations·Ch. 10 COOPERATIVE MARKETING ASSOCIATIONS·Art. 2 PROCESSING COOPERATIVE

(a)A cooperative may set aside a portion of net income allocated to the patron membership interests as the board determines advisable to create or maintain a capital reserve.

(b)In addition to a capital reserve, the board may, for patron membership interests:

(i)Set aside an amount not to exceed five percent (5%) of the annual net income of the cooperative for promoting and encouraging cooperative organization; and

(ii)Establish and accumulate reserves for new buildings, machinery and equipment, depreciation, losses, and other proper purposes.

(c)Net income allocated to patron members in excess of dividends on equity and additions to reserves shall be distributed to patron members on the basis of patronage. A cooperative may establish allocation units, whether the units are functional

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(a) A cooperative may set aside a portion of net income
allocated to the patron membership interests as the board
determines advisable to create or maintain a capital reserve.
(b) In addition to a capital reserve, the board may, for
patron membership interests:
(i) Set aside an amount not to exceed five percent
(5%) of the annual net income of the cooperative for promoting
and encouraging cooperative organization; and
(ii) Establish and accumulate reserves for new
buildings, machinery and equipment, depreciation, losses, and
other proper purposes.
(c) Net income allocated to patron members in excess of
dividends on equity and additions to reserves shall be
distributed to patron members on the basis of patronage. A
cooperative may establish allocation units, whether the units
are functional, divisional, departmental, geographic, or
otherwise and pooling arrangements and may account for and
distribute net income to patrons on the basis of allocation
units and pooling arrangements. A cooperative may offset the net
loss of an allocation unit or pooling arrangement against the
net income of other allocation units or pooling arrangements.
(d) Distribution of net income shall be made at least
annually. The board shall present to the members at their annual
meeting a report covering the operations of the cooperative
during the preceding fiscal year.
(e) A cooperative may distribute net income to patron
members in cash, capital credits, allocated patronage equities,
revolving fund certificates, or its own or other securities.
(f) The cooperative may provide in the bylaws that
nonmember patrons are allowed to participate in the distribution
of net income payable to patron members on equal terms with
patron members.
(g) If a nonmember patron with patronage credits is not
qualified or eligible for membership, a refund due may be
credited to the patron's individual account. The board may issue
a certificate of interest to reflect the credited amount. After
the patron is issued a certificate of interest, the patron may
participate in the distribution of income on the same basis as a
patron member.

Wyoming § 17-10-234 (Allocations and distributions to patron members) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.