Sec. 33-418m. System of internal capital accounts. Redemption of shares. Interest. Collective reserve account. - Connecticut Statutes

      Sec. 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.

      (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 section 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.

      (P.A. 84-430, S. 10, 14; P.A. 96-271, S. 175, 254.)

      History: P.A. 96-271 amended Subsec. (b) to replace reference to "subsection (b) of section 33-321" with "subsection (a) of section 33-757", effective January 1, 1997.