Louisiana Revised Statutes 12:499.9 – Net savings; apportionment
Terms Used In Louisiana Revised Statutes 12:499.9
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
A. At least once a year the board of every cooperative housing corporation shall, after first setting aside an adequate portion of the net savings in a reserve fund for the general operation of the business, apportion the remainder of the net savings in one or more of the following ways:
(1) As a dividend not to exceed six percent, noncumulative, upon one or more classes of stock.
(2) As an equitable distribution or refund to all patrons in proportion to their individual patronage except that:
(a) In the case of a subscriber patron, the distribution or refund may be credited to the subscriber’s account until the subscription has been fully paid; and
(b) In the case of a nonmember patron, the amount otherwise distributable may be retained by the cooperative housing corporation.
B. This Section shall not prevent a cooperative housing corporation from disposing of the net savings by reducing the cost of goods, facilities, or services or by applying such net savings otherwise for the common benefit of members.
C. This Section shall not prevent a cooperative housing corporation from adopting a system by which the net savings are deferred for a fixed period of time, nor from adopting a system in which the net savings distributed are partly in cash and partly in stock.
Acts 1990, No. 857, §1.