§ 23.78.080. Internal capital accounts authorized -- Redemptions -- Assignment of portion of retained net earnings and net losses to collective reserve account authorized
(1) Any employee 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.
(2) The articles of incorporation or bylaws of an employee 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 redemption would result in a violation of RCW 23B.06.400.
(3) The articles of incorporation or bylaws may provide for the employee cooperative to pay or credit interest on the balance in each member's internal capital account.
(4) The articles of incorporation or bylaws may authorize assignment of a portion of retained net earnings and net losses to a collective reserve account. Earnings assigned to the collective reserve account may be used for any and all corporate purposes as determined by the board of directors.
[1991 c 72 § 13; 1987 c 457 § 9.]
Sections: Previous 23.78.010 23.78.020 23.78.030 23.78.040 23.78.050 23.78.060 23.78.070 23.78.080 23.78.090 23.78.100 23.78.900 23.78.902 NextLast modified: April 7, 2009