Section 10A-11-1.01 Short title. This chapter and the provisions of (A) Chapter 1 and (B) Chapter 2 or Chapter 2A, as applicable, to the extent applicable to employee cooperative associations may be cited as the Alabama Employee Cooperative Corporations Law. (Act 97-949, p. 524, §1; §10-14-1; amended and renumbered by Act 2009-513, p. 967, §312; […]
Section 10A-11-1.02 Definitions. As used in this chapter, the following words shall have the following meanings: (1) COLLECTIVE RESERVE ACCOUNT. An internal capital account that represents the portion of the net book value of the corporation attributable to the cooperative. (2) EMPLOYEE COOPERATIVE. A corporation which has elected to be governed by this chapter. (3) […]
Section 10A-11-1.03 Election as employee cooperative. Any corporation governed by the Alabama Business Corporation Law may elect to be governed as an employee cooperative under this chapter, by so stating in its certificate of formation or certificate of amendment filed in accordance with the Alabama Business Corporation Law. (Act 97-949, p. 524, §3; §10-14-3; amended […]
Section 10A-11-1.04 Revocation. An employee cooperative may revoke its election under this chapter by a vote of two-thirds of the members and through articles of amendment filed in accordance with the Alabama Business Corporation Law. (Act 97-949, p. 524, §4; §10-14-4; amended and renumbered by Act 2009-513, p. 967, §312; Act 2019-94, §2.)
Section 10A-11-1.05 Corporate name. An employee cooperative may include the word “cooperative” or “co-op” in its corporate name, provided, however, that the name shall not include the words “electric” or “power”. (Act 97-949, p. 524, §5; §10-14-5; amended and renumbered by Act 2009-513, p. 967, §312.)
Section 10A-11-1.06 Members; membership shares; rights and responsibilities. (a) The governing documents shall establish qualifications and the method of acceptance and termination of members. No person may be accepted as a member unless employed by the employee cooperative on a full-time or part-time basis. In order to qualify for membership, part-time employment shall be at […]
Section 10A-11-1.07 Directors and officers. (a) The bylaws of an employee cooperative shall provide for the election, terms, classification, if any, and removal of directors and officers. (b) Nonmembers may serve as directors or officers of an employee cooperative but at no time shall the number of nonmember directors or officers exceed 25 percent of […]
Section 10A-11-1.08 Voting power; amendment or repeal of bylaws; protection of stockholders. (a) No capital stock other than membership shares shall be given voting power in an employee cooperative, except as otherwise provided in this chapter. (b) Notwithstanding any other provision of law, the power to amend or repeal bylaws of an employee cooperative shall […]
Section 10A-11-1.09 Apportionment, etc., of net earnings or losses. (a) The net earnings or losses of an employee cooperative shall be apportioned and distributed at such times and in such manner as the governing documents specify. Net earnings declared as patronage allocations with respect to a period of time, and paid or credited to members, […]
Section 10A-11-1.10 Internal capital accounts. (a) Any employee cooperative may establish through its governing documents a system of internal capital accounts, to reflect the book value and to determine the redemption price of membership shares, capital stock, and written notices of allocation. (b) The governing documents of an employee cooperative may permit the periodic redemption […]
Section 10A-11-1.11 Internal capital account cooperatives. (a) An internal capital account cooperative is a worker cooperative whose entire net book value is reflected in internal capital accounts, one for each member, and a collective reserve account, and in which no persons other than members own capital stock. In an internal capital account cooperative, each member […]
Section 10A-11-1.12 Conversion of membership shares, etc.; merger of employee cooperatives. (a) When an employee cooperative revokes its election in accordance with Section 10A-11-1.04, the certificate of amendment shall provide for conversion of membership shares and internal capital accounts or their conversion to securities or other property in a manner consistent with the Alabama Business […]
