Chapter 157A

Section 1. This chapter shall be known and may be cited as the Employee Cooperative Corporations Act.

Section 10. (a) An internal capital account cooperative is an employee 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 capital stock. In an int…

Section 11. (a) When any employee cooperative revokes its election in accordance with section four, the articles of amendment shall provide for conversion of membership shares and internal capital accounts or their conversion to securities or other property in a manner consistent…

Section 2. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings: ''Employee cooperative'', a corporation which has elected to be governed by the provisions of this chapter. ''Member'', a natural person who h…

Section 3. Any corporation organized under chapter 156D may elect to be governed as an employee cooperative under this chapter, by so stating in its articles of organization or articles of amendment filed in accordance with chapter 156B. A corporation so electing shall be governe…

Section 4. An employee cooperative may revoke its election under this chapter by a vote of two-thirds of the members and through articles of amendment filed in accordance with section seventy-two of said chapter one hundred and fifty-six B.

Section 5. An employee cooperative may include the word ''cooperative'' or ''co-op'' in its corporate name.

Section 6. (a) The articles of organization or the by-laws shall establish qualifications and the method of acceptance and termination of members. No person may be accepted as a member unless employed by the employee cooperative on a full time or part time basis. (b) An employee …

Section 7. (a) No capital stock other than membership shares shall be given voting power in an employee cooperative, except as otherwise provided in this chapter or in the articles of organization. (b) Notwithstanding the provisions of section seventeen of said chapter one hundre…

Section 8. (a) The net earnings or losses of an employee cooperative shall be apportioned and distributed at such times and in such manner as the articles of organization or by-laws shall specify. Net earnings declared as patronage allocations with respect to a period of time, an…

Section 9. (a) Any employee cooperative may establish through its articles of organization or by-laws 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 …