(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 of written notices of allocation and capital stock, and shall provide for recall and redemption of the membership share upon termination of membership in the cooperative. No redemption shall be made if the redemption would result in the liability of any director or officer of the employee cooperative.
(c) The governing documents may provide for the employee cooperative to pay or credit interest on the balance in each member's internal capital account.
(d) The governing documents may authorize assignment of a portion of retained net earnings and net losses to a collective reserve account. Earnings assigned to the collective reserve account may be used for any and all corporate purposes as determined by the board of directors.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 11 - Employee Cooperative Corporations.
Section 10A-11-1.01 - Short Title.
Section 10A-11-1.02 - Definitions.
Section 10A-11-1.03 - Election as Employee Cooperative.
Section 10A-11-1.04 - Revocation.
Section 10A-11-1.05 - Corporate Name.
Section 10A-11-1.06 - Members; Membership Shares; Rights and Responsibilities.
Section 10A-11-1.07 - Directors and Officers.
Section 10A-11-1.08 - Voting Power; Amendment or Repeal of Bylaws; Protection of Stockholders.
Section 10A-11-1.09 - Apportionment, etc., of Net Earnings or Losses.
Section 10A-11-1.10 - Internal Capital Accounts.
Section 10A-11-1.11 - Internal Capital Account Cooperatives.
Section 10A-11-1.12 - Conversion of Membership Shares, etc.; Merger of Employee Cooperatives.