Section 308A.701 Reserves - Minnesota Statutes

308A.701 RESERVES.

Subdivision 1.Capital reserve.

A cooperative may set aside a portion of net income as the board determines advisable to create or maintain a capital reserve.

Subd. 2.Additional reserves.

In addition to a capital reserve, the board may:

(1) set aside an amount not to exceed five percent of the annual net income of the cooperative for promoting and encouraging cooperative organization; and

(2) establish and accumulate reserves for new buildings, machinery and equipment, depreciation, losses, and other proper purposes.

History:

1989 c 144 art 1 s 37