Code of Virginia
Chapter 3 - Cooperative Associations
§ 13.1-354. Internal capital accounts; redemption of shares; collective reserve account

A. A worker cooperative shall establish through its articles of incorporation or bylaws a system of internal capital accounts to reflect the book value and to determine the redemption price of membership shares, nonvoting shares, and written notices of allocation. As used in this section, "written notice of allocation" means a written instrument that discloses to a member the stated dollar amount of such member's patronage allocation and the terms for payment of that amount by the worker cooperative.
B. The articles of incorporation or bylaws of a worker cooperative may permit the periodic redemption of written notices of allocation and nonvoting shares and shall provide for recall and redemption of the membership share upon termination of membership in the cooperative.
C. The articles of incorporation or bylaws may provide for the worker cooperative to pay or credit interest on the balance in each member's internal capital account.
D. The articles of incorporation or bylaws 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.
E. A worker cooperative may issue nonvoting shares to members and nonmembers. Nonvoting shares may be redeemed or retired by the worker cooperative on such terms and conditions as may be provided in the articles of incorporation or bylaws. Payment for nonvoting shares may be made in cash, services, or property as determined by the board.
F. Any worker cooperative issuing shares under this article may accept registrations of such shares in the names of two or more persons, payable to any one of them, or to any one of them or the survivor, and any person so named, whether the others be living or not, may accept dividend payments and withdraw from the association and receive the amount payable on withdrawal in the same manner and on the same terms as are allowed by law and the articles of incorporation and bylaws in case of any other member or shareholder, and the receipt or acceptance of dividends or amounts payable on withdrawal by the person so paid shall be a valid and sufficient release and discharge of the association for any payment so made.
2020, c. 673.

Structure Code of Virginia

Code of Virginia

Title 13.1 - Corporations

Chapter 3 - Cooperative Associations

§ 13.1-301. Organization of cooperative associations; purposes; name; par value stock required

§ 13.1-301.1. Amendments to articles of incorporation

§ 13.1-301.2. Adoption, change or repeal of bylaws; subject matter

§ 13.1-302. Limitation of individual stockholding

§ 13.1-303. Investment in other stock

§ 13.1-304. Purchase of business by issue of shares of stock

§ 13.1-305. Rights of subscribers before full payment

§ 13.1-306. Distribution of earnings

§ 13.1-307. Permissible limitation of stock ownership or voting rights

§ 13.1-308. Limitation of use of "cooperative" in corporate name

§ 13.1-309. Other cooperatives may come under article

§ 13.1-309.1. Foreign cooperatives

§ 13.1-310. Cooperative associations may give certain liens on rotating stocks

§ 13.1-311. Taxation

§ 13.1-311.1. Provisions relating to dissolution of and revocation of certificates of associations

§ 13.1-312. Liberal construction of article

§ 13.1-313. Definitions

§ 13.1-314. Qualification of incorporators

§ 13.1-315. Purposes

§ 13.1-316. Articles of incorporation

§ 13.1-317. Filing and recording articles of incorporation

§ 13.1-318. Amendments to the articles of incorporation

§ 13.1-319. Bylaws

§ 13.1-320. Powers

§ 13.1-321. Members

§ 13.1-322. Membership or voting stock certificates; transfers; dividends; nonvoting stock

§ 13.1-323. General and special meetings; how called

§ 13.1-324. Directors generally; executive committee

§ 13.1-325. Removal of director

§ 13.1-326. Officers generally

§ 13.1-327. Removal of officer

§ 13.1-328. Referendum

§ 13.1-329. Marketing contracts; enforcement; inducing breach; spreading false reports

§ 13.1-330. Recordation of marketing contracts

§ 13.1-331. Associations are not in restraint of trade

§ 13.1-332. Voluntary dissolution

§ 13.1-333. Repealed

§ 13.1-333.1. Annual reports

§ 13.1-334. Application to existing associations

§ 13.1-335. Saving clause

§ 13.1-336. Limitations of the use of the word "cooperative."

§ 13.1-337. Foreign associations

§ 13.1-338. Purchasing business of other associations, persons, firms or corporations; stock issued

§ 13.1-339. Merger or consolidation

§ 13.1-340. Sale, mortgage or other disposition of assets

§ 13.1-341. Taxes

§ 13.1-342. Reserved

§ 13.1-343. Application of general corporation laws

§ 13.1-344. Existing associations continued

§ 13.1-345. Verification no longer required; signing instrument containing misstatement as perjury

§ 13.1-346. Definitions

§ 13.1-347. Formation of worker cooperative; purpose

§ 13.1-348. Name

§ 13.1-349. Application of other laws

§ 13.1-350. Revocation of election to be governed as worker cooperative; limitation on mergers

§ 13.1-351. Qualifications of members; membership shares

§ 13.1-352. Voting rights

§ 13.1-353. Net earnings or losses; apportionment, distribution, and payment

§ 13.1-354. Internal capital accounts; redemption of shares; collective reserve account

§ 13.1-355. Internal capital accounting