Connecticut General Statutes 33-418m – System of internal capital accounts. Redemption of shares. Interest. Collective reserve account
(a) Any worker cooperative may establish through its certificate of incorporation or bylaws a system of internal capital accounts to reflect the book value and to determine the redemption price of membership shares, corporate shares and written notices of allocation.
Terms Used In Connecticut General Statutes 33-418m
- Member: means a natural person who or nonprofit organization that has been accepted for membership in, and owns a membership share issued by a worker cooperative. See Connecticut General Statutes 33-418g
- Worker cooperative: means a corporation which has elected to be governed by the provisions of this chapter. See Connecticut General Statutes 33-418g
(b) The certificate of incorporation or bylaws of a worker cooperative may permit the periodic redemption of written notices of allocation and corporate shares, and shall provide for recall and redemption of the membership share upon termination of membership in the cooperative, except that no redemption shall be made if it would result in the liability of any director of the worker cooperative pursuant to subsection (a) of § 33-757.
(c) The certificate of incorporation or bylaws may provide for the worker cooperative to pay or credit interest on the balance of each member‘s internal capital account.
(d) The certificate 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.