California Corporations Code

§ 12317

CORP § 12317 Effective Jan 1, 2019Div. 3 · Title 1 · Part 2 · Ch. 1 · Art. 4

Statute text

(a)A worker cooperative may, in its articles or bylaws, establish itself as a capital account cooperative.

(b)The articles or bylaws of a capital account cooperative may authorize assignment of a portion of retained net earnings and net losses to an unallocated capital account. The unallocated capital account in a capital account cooperative shall reflect any paid-in capital and retained net earnings not allocated to individual members. Earnings assigned to the unallocated capital account may be used for any and all corporate purposes, as determined by the board of directors.

(c)The system of member and unallocated capital accounts may be used to determine the redemption price of member shares, capital stock, and written notices of allocation. The articles or bylaws may provide for the capital account cooperative worker cooperative to pay or credit interest on the balance in each member’s capital account.

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Legislative history

Amended by Stats. 2018, Ch. 92, Sec. 48. (SB 1289) Effective January 1, 2019.