§ 308B.721 Allocations And Distributions To Members
Statute text
Extracted from the Revisor of Statutes; first captured here October 15, 2026. Formatting and whitespace are normalized. Extraction can contain errors; the linked official text controls.
Subdivision 1. Allocation of profits and losses.
The bylaws shall prescribe the allocation of profits and losses between patron membership interests collectively and any other membership interests. If the bylaws do not otherwise provide, the profits and losses between patron membership interests collectively and other membership interests shall be allocated on the basis of the value of contributions to capital made by the patron membership interests collectively and other membership interests and accepted by the cooperative. The allocation of profits to the patron membership interests collectively shall not be less than 50 percent of the total profits in any fiscal year, except that if authorized in the original articles as filed or in articles or bylaws that are adopted by an affirmative vote of the patron members or the articles or bylaws are amended by the affirmative vote of the patron members, the allocation of profits to the patron membership interests collectively may not be less than 15 percent of the total profits in any fiscal year.
Subdivision 2. Distribution of cash or other assets.
The bylaws shall prescribe the distribution of cash or other assets of the cooperative among the membership interests of the cooperative. If not otherwise provided in the bylaws, distribution shall be made to the patron membership interests collectively and other members on the basis of the value of contributions to capital made and accepted by the cooperative, by the patron membership interests collectively, and other membership interests. The distributions to patron membership interests collectively shall not be less than 50 percent of the total distributions in any fiscal year, except that if authorized in the articles or bylaws adopted by the affirmative vote of the patron members, or the articles or bylaws are amended by the affirmative vote of the patron members, the distributions to patron membership interests collectively shall not be less than 15 percent of the total distributions in any year.
History: 2003 c 105 art 1 s 64
Pages that link here
- § 308B.551 PATRON MEMBER VOTING BASED ON PATRONAGE.
- § 308B.601 MEMBERSHIP INTERESTS.
- § 308B.611 NATURE OF A MEMBERSHIP INTEREST AND STATEMENT OF INTEREST OWNED.
- § 308B.627 MEMBER CONTROL AGREEMENTS.
- § 308B.705 RESTATEMENT OF VALUE OF PREVIOUS CONTRIBUTIONS.
- § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.
- § 308B.905 WINDING UP.
- Allocate patronage and make distributions
- Buying from or contracting with a cooperative
- Chapter 308B at a glance
- Chapter 308B questions, drafting observations and resolved filing issues
- Choose a cooperative type and chapter
- Comparing cooperative and other Minnesota entity types
- Corrections
- Document checklist for forming and running a 308B cooperative
- Financial rights
- Form a Minnesota cooperative under Chapter 308B
- Giving a cooperative a loan, grant or other local assistance
- Member control agreement
- Nonpatron membership interest
- Organize a worker cooperative under chapter 308B
- Patron membership interest
- Raise member equity and capital
- What a 308B cooperative is, for city and county staff
- What is a member control agreement?
- Write the articles of organization
- Write the bylaws
Notes & interpretation Not part of the law
Verified against sources: October 15, 2026Last edited: October 16, 2026
In plain language#
The bylaws must prescribe how profits and losses are allocated between patron membership interests (collectively) and other membership interests, and how cash and other assets are distributed. If the bylaws are silent, both follow the value of capital contributions made and accepted by the cooperative.
Floors for the patron group (as a group):
How it works in practice#
Related#
Sources
patronagedistributionscapitalbylawsmembership-classes