HB 5264
Establishing workers cooperative corporations
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a legal framework for establishing ‘workers cooperative corporations’ in West Virginia. It defines key terms, outlines requirements for these cooperatives, and specifies how they can be structured, including the option for ‘capital account cooperatives’ where member contributions are tracked individually. The bill also details the process for dissolving these cooperatives and distributing assets, prioritizing patronage and capital contributions.
Key provisions
- Defines ‘worker cooperative’ and related terms like ‘capital account cooperative’ and ‘patronage’.
- Requires worker cooperatives to explicitly state their status in their articles of incorporation.
- Allows for the creation of ‘capital account cooperatives’ where member contributions are tracked individually.
- Specifies how assets are distributed upon dissolution, prioritizing patronage, capital contributions, or a combination thereof.
- Limits mergers and consolidations to other worker cooperatives.
- Establishes criteria for determining the distribution of the unallocated capital account.
- Permits the use of patronage (such as wages earned or hours worked) as a factor in determining distribution.
- Outlines specific requirements for articles of incorporation and bylaws.
Who is affected
- Employees
- Business Owners
- Local Communities
- Cooperatives
- West Virginia Residents
Notable changes
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