2010 Pennsylvania Code
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 77 - Workers' Cooperative Corporations
7717 - Patronage distributions.

     § 7717.  Patronage distributions.
        (a)  Procedure.--Net earnings of a corporation may be
     apportioned, distributed and paid periodically on the basis of
     patronage to those persons entitled to receive them, at a time
     and in a manner as the bylaws provide. The distributions shall
     be designated as patronage allocations.
        (b)  Method of payment.--The apportionment, distribution and
     payment of net earnings under subsection (a) may be in cash or
     written notices of allocation issued by the corporation.
        (c)  Minimum transaction amount.--A corporation may provide
     in its bylaws the minimum amount of a single patronage
     transaction, which shall be taken into account for the purpose
     of participation in allocation and distribution of net earnings
     under this section.
        (d)  Periodic redemption.--The bylaws of a workers'
     cooperative corporation shall provide for periodic redemption of
     written notices of allocation.
        (e)  Interest.--The bylaws may provide for the corporation to
     pay or credit interest on the balance of each member's internal
     capital account.
        (f)  Termination redemption.--The articles of incorporation
     shall provide for the recall and redemption of the membership
     share upon the voluntary or involuntary termination of
     membership in the corporation. The price of the redemption shall
     be equal to the sum of the membership fee and any other capital
     paid in by the member, adjusted by the amount of interest
     accrued and by distributions of net earnings as provided in the
     bylaws. No redemption may be made which would render the
     corporation insolvent.
        (g)  Net earnings.--For purposes of this section, net
     earnings shall be computed in accordance with generally accepted
     accounting principles.