§ 4A-12A-20
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/md/corporations-and-associations/4a-12a-20·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§4A–12A–20. NOT IN EFFECT
** TAKES EFFECT OCTOBER 1, 2026 PER CHAPTERS 198 AND 199 OF 2025 **
(a)A limited worker cooperative association may establish, through the articles of organization or cooperative agreement, a system of internal capital accounts to reflect the book value and to determine the redemption price of membership interests and written notices of allocation.
(b)The articles of organization or cooperative agreement:
(1)May allow the periodic redemption of written notices of allocation; and
(2)Shall provide for recall and redemption of membership interests on termination of membership in the limited worker cooperative association.
(1)A limited worker cooperative association may allocate a portion of retained net earnings and net losses to a collective reserve account.
(2)Earnings of a limited worker cooperative association assigned to a collective reserve account may be used for any purpose determined by:
(i)In the case of a collective worker cooperative, the members; or
(ii)In the case of a limited worker cooperative association other than a collective worker cooperative, the board of representatives.