§ 43-38-904. Liability for Unlawful Distribution
Unless the member or director complies with the applicable standards of conduct set forth in § 43-38-616, a member or director who votes for or assents to a distribution made in violation of § 43-38-903 or the articles or bylaws is personally liable to the cooperative for the amount of the distribution that exceeds what […]
§ 43-38-901. Allocation of Profits and Losses
The bylaws shall prescribe the allocation of profits and losses between patron membership interests collectively and other membership interests. If the bylaws do not otherwise provide, the profits and losses between patron membership interests collectively and other membership interests shall be allocated on the basis of the value of contributions to capital made by the […]
§ 43-38-902. Creation and Maintance of a Capital Reserve — Distribution of Net Income
A cooperative may set aside a portion of net income allocated to the patron membership interests as the board determines advisable to create or maintain a capital reserve. In addition to a capital reserve, the board may, for patron membership interests: Set aside an amount not to exceed five percent (5%) of the annual net […]
§ 43-38-903. Limitations on Distribution
No distribution may be made by a cooperative if, after giving effect to the distribution: The cooperative would not be able to pay its debts as they became due in the normal course of business; or The cooperative’s total assets would be less than the sum of its total liabilities, plus, unless the articles or […]