(a) An internal capital account cooperative is a worker cooperative whose entire net book value is reflected in internal capital accounts, one for each member, and a collective reserve account, and in which no persons other than members own capital stock. In an internal capital account cooperative, each member shall have one and only one vote in any matter requiring voting by stockholders.
Terms Used In Alabama Code 10A-11-1.11
- COLLECTIVE RESERVE ACCOUNT: An internal capital account that represents the portion of the net book value of the corporation attributable to the cooperative. See Alabama Code 43-2-747
- cooperative: Includes an employee cooperative as defined in Chapter 11. 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
- individual: A natural person and the estate of an incompetent or deceased natural person. See Alabama Code 45-26-231.06
- INTERNAL CAPITAL ACCOUNT COOPERATIVE: An employee cooperative governed in accordance with Section 10A-11-1. See Alabama Code 43-2-747
- INTERNAL CAPITAL ACCOUNTS: A system of accounts on the books of an employee cooperative that reflects the book value of the corporation. 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
- MEMBERSHIP FEE: The consideration paid for a membership share. 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) An internal capital account cooperative shall credit the paid-in membership fee and additional paid-in capital of a member to the member’s internal capital account and shall also record the apportionment of retained net earnings or net losses to the members in accordance with patronage by appropriately crediting or debiting the internal capital accounts of members. The collective reserve account in an internal capital account cooperative shall reflect any paid-in capital, net losses, and retained net earnings not allocated to individual members.
(c) In an internal capital account cooperative, the balance in all the individual internal accounts and collective reserve account, if any, shall be adjusted at the end of each accounting period so that the sum of the balances is equal to the net book value of the employee cooperative.