Allocation unit
An allocation unit is a functional, divisional, departmental, geographic or other unit a cooperative may set up to account for and distribute net income to patrons separately; chapter 308B also permits pooling.
A cooperative may establish allocation units, "whether the units are functional, divisional, departmental, geographic, or otherwise," and pooling arrangements, and may account for and distribute net income on that basis. It may offset the net loss of one unit or pool against the net income of others § 308B.725, subd. 3 P1. Director voting authority may likewise be allocated by allocation units or equity classifications, but patron-elected directors must retain at least half of general board voting power under § 308B.411, subd. 2(c) P1.
Statute sections referenced
- § 308B.411 ELECTION OF DIRECTORS.
- § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.
Related
Sources
- P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)