§ 1406. Allocation of earnings.
183 words·~1 min read·
/de/title-6/chapter-14-delaware-workers-cooperative-act/1406·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The net earnings of a workers cooperative shall be allocated and distributed by the board of directors in accordance with the organizational documents.
(b)Except as otherwise provided in the organizational documents, all of the net earnings of the workers cooperative with respect to a period of time shall be allocated to members on the basis of:
(i)patronage during such period of time,
(ii)capital contributions, or
(iii)some combination of patronage during such period of time and capital contributions; provided, however, that, pursuant to the organizational documents, at least a majority of the allocated earnings of the workers cooperative with respect to a period of time shall be allocated to members on the basis of:
(i)patronage during such period of time,
(ii)capital contributions, or
(iii)some combination of patronage during such period of time and capital contributions.
(c)The allocation, distribution and payment of earnings required by this section may be in cash, credits, written notices of allocation or any other type of tangible or intangible property, including, without limitation, shares of stock issued by the workers cooperative.