Internal capital accounts — Recall or redemption of shares — Interest — Collective reserve account.
R.I. Gen. Laws § 7-6.2-10
in effect7-6.2-10. Internal capital accounts — Recall or redemption of shares — Interest — Collective reserve account.
(a) Any workers’ cooperative may establish through its certificate 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.
As used in this section, “written notice of allocation” means a written instrument
that discloses to a member the stated dollar amount of the member’s patronage allocation,
and the terms for a payment amount by the workers’ cooperative.
(b) The certificate of incorporation or bylaws of a workers’ 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 the redemption would result in the
liability of any director or officer of the workers’ cooperative under §§ 7-1.2-801 — 7-1.2-814.
(c) The certificate of incorporation or bylaws may authorize assignment of a portion of
net retained proceeds and net losses to a collective reserve account. Net retained
proceeds assigned to the collective reserve account may be used for any and all corporate
purposes as determined by the board of directors.
P.L. 2017, ch. 370, § 1; P.L. 2017, ch. 378, § 1.
Source: State of Rhode Island General Assembly (rilegislature.gov)URL: https://webserver.rilegislature.gov/Statutes/TITLE7/7-6.2/7-6.2-10.htmFetched: 10/20/2026