There shall be a distribution of the profits or surplus of an association among the member shareholders as is prescribed by the association's bylaws. The board of directors of an association may declare a sum of not more than forty per cent of the net profits or surplus to be appropriated for a contingent or sinking fund, an unallocated reserve fund or a collective account as may be prescribed in the association's bylaws.
(1949 Rev., S. 5302; P.A. 19-65, S. 8.)
History: P.A. 19-65 replaced “earnings” with “surplus”, replaced former provision re distribution of profits or earnings with provision re the authority of board of directors of an association to appropriate portion of the net profits or surplus and made technical changes.
Structure Connecticut General Statutes
Chapter 595 - Cooperative Associations
Section 33-183. - Organization.
Section 33-184. - Object and place of business.
Section 33-185. - Business of association managed by board of directors.
Section 33-186. - First meeting. Bylaws.
Section 33-187. - Capital stock; franchise tax.
Section 33-188. - Annual reports.
Section 33-189. - Termination of corporate existence on neglect to file annual reports.
Section 33-190. - Voting power.
Section 33-191. - Issue of certificate of shares.
Section 33-192. - Failure to file annual report or making of untrue report; penalty.