Cal. CORP § 12656.5
This is the official text of Cal. CORP § 12656.5, part of California’s Corporations Code — governs the formation and operation of corporations, LLCs, and partnerships, and regulates securities.
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Official statutory text
(a) After complying with the provisions of Section 12653, and except as otherwise provided in Section 12655, upon dissolution of a worker cooperative the majority of the unallocated capital account shall be distributed to members on the basis of any of the following, as specified in the articles of incorporation or bylaws of the cooperative:
(1) Patronage.
(2) Capital contributions.
(3) A combination of patronage and capital contributions.
(b) A worker cooperative is authorized to include patronage provided by past and current members in its distribution of the unallocated capital account.
(c) Subdivision (a) shall not apply to any amounts in the indivisible reserve account. Any amount in the indivisible reserve account shall, upon dissolution, be allocated to a cooperative development organization designated in the articles of incorporation or the bylaws.
(1) Patronage.
(2) Capital contributions.
(3) A combination of patronage and capital contributions.
(b) A worker cooperative is authorized to include patronage provided by past and current members in its distribution of the unallocated capital account.
(c) Subdivision (a) shall not apply to any amounts in the indivisible reserve account. Any amount in the indivisible reserve account shall, upon dissolution, be allocated to a cooperative development organization designated in the articles of incorporation or the bylaws.
Status: in_force · Read it on the official government site
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