The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 11 V.S.A. § 1090)
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§ 1090. Internal capital accounts; recall or redemption of shares; interest; collective reserve
account
(a) A worker cooperative may provide in its bylaws that it shall operate as an internal
capital account cooperative. Any worker cooperative may establish through its articles
of incorporation or bylaws a system of internal capital accounts, to reflect the book
value and to determine the redemption price of membership shares, capital stock, and
written notices of allocation.
(b) The articles of incorporation or bylaws of a worker cooperative may permit the periodic
redemption of written notices of allocation and capital stock, and must provide for
recall and redemption of the membership share upon termination of membership in the
cooperative. No redemption shall be made if such redemption would result in the liability
of any director or officer of the worker cooperative under 11A V.S.A. § 8.33.
(c) The articles of incorporation or bylaws may provide for the worker cooperative to
pay or credit interest on the balance in each member’s internal capital account.
(d) The articles of incorporation or bylaws may authorize assignment of a portion of retained
net earnings and net losses to a collective account. Earnings assigned to the collective
account may be used for any and all corporate purposes as determined by the board
of directors. (Added 1985, No. 46, § 1; amended 2023, No. 85 (Adj. Sess.), § 23, eff. July 1, 2024.)