§ 72. Reserves, net margins, net retained proceeds, distributions, and patronage refunds.
108 words·~1 min read·
/ny/cooperative-corporations/miscellaneous-provisions/72·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 72. Reserves, net margins, net retained proceeds, distributions, and
patronage refunds. The directors shall periodically set aside reasonable
sums for reserves. The net margins or net retained proceeds may, in the
discretion of the directors, be distributed at least once every twelve
months to members or patrons, by uniform distribution and calculated on
such bases as the by-laws or marketing contract may prescribe.
Distributions may be credited on account of the issuance to members or
patrons of capital stock or other securities of the corporation. In the
case of cooperatives with capital stock, dividends shall not exceed
twelve per centum per annum on any class of stock.