2006 Minnesota Code
Chapters 300 - 319B Corporations
Chapter 308B Cooperative Associations Act
Section 308B.721 ALLOCATIONS AND DISTRIBUTIONS TO MEMBERS.
308B.721 ALLOCATIONS AND DISTRIBUTIONS TO MEMBERS.
Subdivision 1. Allocation of profits and losses. The bylaws shall prescribe the allocation of
profits and losses between patron membership interests collectively and any 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 patron membership interests collectively and
other membership interests and accepted by the cooperative. The allocation of profits to the
patron membership interests collectively shall not be less than 50 percent of the total profits in
any fiscal year, except that if authorized in the original articles as filed or in articles or bylaws that
are adopted by an affirmative vote of the patron members or the articles or bylaws are amended by
the affirmative vote of the patron members, the allocation of profits to the patron membership
interests collectively may not be less than 15 percent of the total profits in any fiscal year.
Subd. 2. Distribution of cash or other assets. The bylaws shall prescribe the distribution
of cash or other assets of the cooperative among the membership interests of the cooperative.
If not otherwise provided in the bylaws, distribution shall be made to the patron membership
interests collectively and other members on the basis of the value of contributions to capital made
and accepted by the cooperative, by the patron membership interests collectively, and other
membership interests. The distributions to patron membership interests collectively shall not be
less than 50 percent of the total distributions in any fiscal year, except that if authorized in the
articles or bylaws adopted by the affirmative vote of the patron members, or the articles or bylaws
are amended by the affirmative vote of the patron members, the distributions to patron membership
interests collectively shall not be less than 15 percent of the total distributions in any year.
History: 2003 c 105 art 1 s 64
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