Sec. 33-418n. Internal capital account cooperatives.
Sec. 33-418n. Internal capital account cooperatives. (a) An internal capital account cooperative is a worker cooperative whose entire net book value is reflected in
internal capital accounts, one for each member, and a collective reserve account, and
in which no persons other than members own corporate shares. In an internal capital
account cooperative, each member shall have one and only one vote in any matter requiring voting by shareholders.
(b) An internal capital account cooperative shall credit the paid-in membership fee
and additional paid-in capital of a member to the member's internal capital account,
and shall also record the apportionment of retained net earnings or net losses to the
members in accordance with patronage by appropriately crediting or debiting the internal capital accounts of members. The collective reserve account in an internal capital
account cooperative shall reflect any paid-in capital, net losses, and retained net earnings
not allocated to individual members.
(c) In an internal capital account cooperative, the balances in all the individual
internal capital accounts and collective reserve account, if any, shall be adjusted at the
end of each accounting period so that the sum of the balances is equal to the net book
value of the worker cooperative.
(P.A. 84-430, S. 11, 14.)