Texas Business Organizations Code

§ 251.302 — ALLOCATION AND DISTRIBUTION OF NET SAVINGS

BO § 251.302Title 6. ASSOCIATIONS · Ch. 251. COOPERATIVE ASSOCIATIONS · Art. G. CAPITAL AND NET SAVINGS

Statute text

(a)At least once each year the members or directors of a cooperative association, as provided by the certificate of formation or bylaws of the cooperative association, shall apportion the net savings of the cooperative association in the following order:

(1)subject to Section 251.301, investment dividends payable from the surplus of the total assets over total liabilities may be paid on invested capital or, if authorized by the bylaws, may be paid on the membership certificates;

(2)a portion of the remainder, as determined by the certificate of formation or bylaws, may be allocated to an educational fund to be used in teaching cooperation;

(3)a portion of the remainder may be allocated to funds for the general welfare of the members of the cooperative association;

(4)a portion of the remainder may be allocated to retained earnings; and

(5)the remainder shall be allocated at the same uniform rate to each patron of the cooperative association in proportion to individual patronage as follows:

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.