(a)  The net retained proceeds or losses of a workers’ cooperative shall be apportioned and distributed at such times and in such manner as the certificate of incorporation or bylaws shall specify. Net retained proceeds declared as patronage allocations with respect to a period of time, and paid or credited to members, shall be apportioned among the members in accordance with the ratio which each member‘s patronage during the period involved bears to patronage by all members during that period. As used in this section, “patronage” means the amount of work performed as a member of a workers’ cooperative, measured in accordance with the certificate of incorporation and bylaws.

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(b)  The apportionment, distribution, and payment of net retained proceeds required by subsection (a) of this section may be in cash credits, written notices of allocation, or capital stock issued by the workers’ cooperative. If the distribution and payment of net retained proceeds is made in cash credits, such distribution and payments shall be subject to pass-through withholding under § 44-11-2.2.