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

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

• (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.)