Section 11: Net savings; apportionment
217 words·~1 min read·
/ma/part-i/title-xxii/chapter-157b/11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 11. At least once a year the board of every cooperative corporation shall, after first setting aside an adequate portion of the net savings in a reserve fund for the general operation of the business, apportion the remainder of the net savings in one or more of the following ways:
(1)as a dividend not to exceed ten per cent, noncumulative, upon one or more classes of stock;
(2)as an equitable distribution or refund to all patrons in proportion to their individual patronage except that
(a)in the case of a subscriber patron, the distribution or refund may be credited to the subscriber's account until the subscription has been fully paid, and
(b)in the case of a nonmember patron, the amount otherwise distributable may be retained by the cooperative corporation;
(3)this section does not prevent a cooperative corporation from disposing of the net savings by reducing the cost of goods, facilities or services or by applying such net savings otherwise for the common benefit of members;
(4)this section does not prevent a cooperative corporation from adopting a system by which the payment of net savings are deferred for a fixed period of time, nor from adopting a system in which the net savings distributed are partly in cash and partly in stock.