(a) The net earnings or losses of an employee cooperative shall be apportioned and distributed at such times and in such manner as the governing documents specify. Net earnings declared as patronage allocations with respect to a period of time, and paid or credited to members, shall be apportioned among the members in accordance with the ratio which each member‘s patronage during the period involved bears to total patronage by all members during that period.

Terms Used In Alabama Code 10A-11-1.09

  • cooperative: Includes an employee cooperative as defined in Chapter 11. See Alabama Code 45-26-231.06
  • distribution: A transfer of property, including cash, from an entity to an owner or member of the entity in the owner's or member's capacity as an owner or member. See Alabama Code 45-26-231.06
  • EMPLOYEE COOPERATIVE: A corporation which has elected to be governed by this chapter. See Alabama Code 43-2-747
  • member: A natural person who has been accepted for membership in and owns a membership share issued by an employee cooperative. See Alabama Code 43-2-747
  • patronage: The amount of work performed as a member of an employee cooperative, measured in accordance with the governing documents. See Alabama Code 43-2-747

(b) The apportionment, distribution, and payment of net earnings required by subsection (a) may be in cash, credits, written notices of allocation, or capital stock issued by the employee cooperative.

(Act 97-949, p. 524, §9; §10-14-9; amended and renumbered by Act 2009-513, p. 967, §312.)