§ 7-6.1-11 - Net savings – Apportionment.
SECTION 7-6.1-11
§ 7-6.1-11 Net savings –Apportionment. – At least once a year the board of every cooperative housing corporation shall,after first setting aside an adequate portion of the net savings in a reservefund for the general operation of the business, apportion the remainder of thenet savings in one or more of the following ways:
(1) As a dividend not to exceed ten percent (10%),noncumulative, upon one or more classes of stock;
(2) As an equitable distribution or refund to all patrons inproportion to their individual patronage except that
(i) in the case of a subscriber patron, the distribution orrefund may be credited to the subscriber's account until the subscription hasbeen fully paid, and
(ii) in the case of a nonmember patron, the amount otherwisedistributable may be retained by the cooperative housing corporation;
(3) This section does not prevent a cooperative housingcorporation from disposing of the net savings by reducing the cost of goods,facilities, or services or by applying the net savings otherwise for the commonbenefit of members or stockholders;
(4) This section does not prevent a cooperative housingcorporation from adopting a system by which the payment of net savings aredeferred for a fixed period of time, nor from adopting a system in which thenet savings distributed are partly in cash and partly in stock.