Fall 2017 Proposed Bylaws Amendment
Patronage Refund – a NEW benefit for Co-op Owners!
Attend the Fall Membership Meeting. Please RSVP for the Fall Member Meeting before October 12.
Download the Fall Member Mailing by clicking on the image above.
Bring your questions to the Fall Member-Owner Forum.
Voting takes place between October 15 – November 14
Proposed Bylaws Amendment:
- MEMBERSHIP AND PATRONAGE ALLOCATIONS
- Patronage Allocation System
[Now: “Distribution of Capital Net Proceeds to Members”] [Delete: “The Cooperative may distribute all or part of its net operating proceeds to the members, on the basis of their patronage.” Replace as follows.]
- Patronage Allocations to Member-Owners
(a) Following each fiscal year for which the Cooperative has generated a net surplus (income after expenses, before taxes) from sales to member-owners, the Cooperative shall allocate such surplus to member-owners, consistent with legal requirements, and after reserves, contingencies, policy obligations and long-range plans have been adequately funded, as determined by the Council. (b) The percentage of the allocation each Member-Owner receives will be based on that Member-Owner’s patronage. (c) Patronage allocations shall be done in such a manner as to qualify them as patronage dividends, consistent with cooperative principles, applicable state and federal laws, generally accepted accounting principles, and policies determined by Council. (d) Council will determine, in accordance with applicable tax laws, how much of the allocation, if any, to refund to Member-Owners and how much to retain as working capital in individual Member-Owner patronage equity accounts. (e) The Cooperative is hereby obligated to pay refunds to Member-Owners in cash, by check or store certificate, or by credit to individual Member-Owner patronage equity accounts.
- Consent of Member-Owners. By obtaining or continuing membership in the Cooperative, each Member-Owner consents to take into account, in the manner and to the extent required by federal and state tax law, the stated dollar amount of any written notice of allocation in the year such notice is received.
- Donation of Unclaimed Patronage Refunds. By obtaining or continuing membership in the Cooperative, each Member-Owner agrees that if his or her patronage refund is not claimed within 90 days of issuance, the Cooperative may make a contribution, in the name of the member the cash portion of the Member-Owner’s patronage allocation for that year, to support other organizations that share one or more of the Cooperative’s purposes in a manner determined by GreenStar’s Council.
- Refunding Retained Patronage. When the Cooperative’s financial position allows, Council shall have the power, but not the obligation, to refund to Member-Owners, in accordance with policies and procedures established prior to any such refund, part or all of any retained patronage allocation from previous fiscal years.