Basis of allocation. Amounts distributed to members shall be based upon the net capital accounts and profit shares of the Members from business transactions completed by the Cooperative, reduced only by amounts which are allowable under federal tax laws and by such reasonable reserves for necessary business and charitable purposes as determined by the Board. In determining and allocating such adjusted net capital accounts and profit membership interest, the Cooperative shall use a single allocation unit except to the extent that it shall engage in any new and distinct line of business subsequent to the adoption of this Agreement. Such adjusted net capital shares and profit membership interest shall be allocated to each member who has satisfied the member requirements and are holders of capital interest during the calendar year.
Appears in 4 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
