2010 Pennsylvania Code
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 77 - Workers' Cooperative Corporations
7706 - Internal capital accounts and net worth.

     § 7706.  Internal capital accounts and net worth.
        (a)  Purpose of accounts.--A corporation shall establish
     through its bylaws a system of internal capital accounts to
     reflect the book value of the corporation and to determine the
     redemption price of membership shares and written notices of
     allocation.
        (b)  Types of accounts.--Internal capital accounts shall be
     of two types: individual internal capital accounts, one for each
     member, and a nonindividuated, collective internal capital
     account, which shall be called the collective reserve account.
        (c)  Net worth.--The net worth of the corporation shall be
     reflected in:
            (1)  The internal capital accounts.
            (2)  The sum of the par value of all outstanding stock
        with par value, other than membership shares.
            (3)  The stated value of evidences of equity in a fund,
        capital investment or other asset of the corporation.
        (d)  Procedure.--A corporation shall credit the paid-in
     membership fee and additional paid-in capital of a member to the
     member's individual internal capital account and shall also
     record the apportionment of retained net earnings or net losses
     to the member's account in accordance with patronage, by
     appropriately crediting or debiting the member's account. The
     collective reserve account shall reflect paid-in capital,
     retained net earnings and net losses not allocated to the
     capital accounts or members or not attributable to funds under
     subsection (c)(1) and (3).
        (e)  Adjustment of balance.--The balances in all of the
     individual internal capital accounts and the collective reserve
     account, if any, shall be adjusted at the end of each accounting
     period so that the sum of these balances and of the amounts
     under subsection (c)(2) and (3) is equal to the net worth of the
     corporation.
        (f)  Use of funds.--Moneys allocated to the internal capital
     accounts may be used for corporate purposes as determined by the
     board of directors.

        Cross References.  Section 7706 is referred to in section
     7705 of this title.