Michigan Laws 450.3183 – Distribution of assets upon dissolution; distribution of assets held for charitable or similar purpose; redemption of investment certificates
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(1) Notwithstanding section 855, upon dissolution, the assets of a cooperative shall be distributed in the following manner and order:
(a) By paying or providing for payment of its debts and expenses.
Terms Used In Michigan Laws 450.3183
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Member capital: means the assets that a member must provide by payment, transfer, or allocation of net savings to a cooperative as a condition of admission to or retention of membership and with respect to which the member has rights to dividends, redemption, or distributions on dissolution under this chapter. See Michigan Laws 450.3104
- Patronage: means the selling or providing of goods, services, or facilities to, or the buying of goods, services, or facilities from members or other persons, or providing labor or services to or by a cooperative. See Michigan Laws 450.3104
(b) By redeeming member capital by paying to the member in cash or other property (i) the lesser of the member’s member capital or the member’s pro rata share of total member capital of the cooperative determined according to the ratio each member’s member capital bears to total member capital, unless a different proration is provided in the articles; or (ii) such other amount as may be provided in the articles or bylaws.
(c) By distributing any surplus to (i) those patrons who have been members or subscribers at any time during not less than the 6 years preceding dissolution or since formation of the cooperative, whichever is less, on the basis of patronage during that period; (ii) any other cooperative, foreign cooperative, or nonprofit organization designated by membership resolution; or (iii) both.
(2) Assets held by a cooperative for a charitable or similar purpose shall be distributed pursuant to section 855(c).
(3) Investment certificates issued pursuant to section 1137 shall be redeemed according to the terms of the certificates.