{"data":{"id":"us-dc/d.c.-code-29-1010.04","jurisdiction":"us-dc","citation":"D.C. Code § 29-1010.04","heading":"Allocations of profits and losses.","body":"(a)\nThe organic rules may provide for allocating profits of a limited cooperative association among members, among persons that are not members but conduct business with the association, to an unallocated account, or to any combination thereof. Unless the organic rules otherwise provide, losses of the association shall be allocated in the same proportion as profits.\n\n(b)\nUnless the organic rules otherwise provide, all profits and losses of a limited cooperative association shall be allocated to patron members.\n\n(c)\nIf a limited cooperative association has investor members, the organic rules shall not reduce the allocation to patron members to less than 50% of profits. For purposes of this subsection, the following rules shall apply:\n(1)\nAmounts paid or due on contracts for the delivery to the association by patron members of products, goods, or services shall not be considered amounts allocated to patron members.\n(2)\nAmounts paid, due, or allocated to investor members as a stated fixed return on equity shall not be considered amounts allocated to investor members.\n\n(d)\nUnless prohibited by the organic rules, in determining the profits for allocation under subsections (a), (b), and (c) of this section, the board of directors may first deduct and set aside a part of the profits to create or accumulate:\n(1)\nAn unallocated capital reserve; and\n(2)\nReasonable unallocated reserves for specific purposes, including:\n(A)\nExpansion and replacement of capital assets;\n(B)\nEducation, training, and cooperative development;\n(C)\nCreation and distribution of information concerning principles of cooperation; and\n(D)\nCommunity responsibility.\n\n(e)\nSubject to subsections (b) and (f) of this section and the organic rules, the board of directors shall allocate the amount remaining after any deduction or setting aside of profits for unallocated reserves under subsection (d) of this section to:\n(1)\nPatron members in the ratio of each member’s patronage to the total patronage of all patron members during the period for which allocations are to be made; and\n(2)\nInvestor members, if any, in the ratio of each investor member’s contributions to the total contributions of all investor members.\n\n(f)\nFor purposes of allocation of profits and losses or specific items of profits or losses of a limited cooperative association to members, the organic rules may establish allocation units or methods based on separate classes of members or, for patron members, on class, function, division, district, department, allocation units, pooling arrangements, members’ contributions, or other equitable methods.","path":["Title 29. Business Organizations. [Enacted title]","Chapter 10. Limited Cooperative Associations.","Subchapter X. Contributions, Allocations, and Distributions."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/29-1010.04","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"eb3131d23b7437ff013a91847a051766409792301240014f35797a0db0c48a92","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-29-1010.03","next":"us-dc/d.c.-code-29-1010.05"},"notice":"GroundRules: Original legal text. Not legal advice."}