{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-306.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-306.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-306.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-306.html"}],"law_id":67757,"edition_id":1,"section_id":67757,"structure_id":14216,"section_number":"13.1-306","catch_line":"Distribution of earnings","history":"Code 1950, \u00a7 13-243; 1956, c. 428.","full_text":"The net earnings and profits of an association organized pursuant to \u00a7 13.1-301 shall be apportioned, distributed and applied as the association may at any general or special meeting direct. The association may in its bylaws prescribe the terms and conditions, rules and regulations under and by which the stockholders or employees, or cooperating nonstockholders may participate in the earnings of the association.\n\t\tUnless and until otherwise ordered by the association at any general or special meeting the board of directors shall annually apportion the net earnings by first paying dividends on the paid-up capital stock not exceeding eight per centum per annum, and by then setting aside not less than ten per centum of the remaining net earnings for a reserve fund until an amount has accumulated in the reserve fund equal to thirty per centum of the paid-up capital stock, and five per centum of the then remaining net earnings for an educational fund to be used in teaching cooperation; and shall apportion the remainder of such net profits by uniform dividends to its stockholders upon the amount of purchases of such association from its stockholders, and sales by the association to its stockholders or for their account, and upon the wages and salaries of employees, and one-half of such uniform dividend to cooperating nonstockholders unless otherwise provided by the bylaws of such association as follows: If the association be engaged in the mercantile business, then to the extent the business is so conducted, dividends, except as hereinafter otherwise provided, shall be paid as above provided to cooperating nonstockholders only upon the amount of their purchases and not upon the purchases made by the association. If the association be engaged to any extent in the purchase and sale of products of farm or orchard or as selling agent of such products, or if the association be a productive association, such as a creamery, cannery or factory, and the like, dividends to such extent shall be paid as above provided to cooperating nonstockholders who furnish such products upon the amounts of such products so furnished and not upon sales by the association.","order_by":null,"text":{"0":{"id":245441,"text":"The net earnings and profits of an association organized pursuant to \u00a7 13.1-301 shall be apportioned, distributed and applied as the association may at any general or special meeting direct. The association may in its bylaws prescribe the terms and conditions, rules and regulations under and by which the stockholders or employees, or cooperating nonstockholders may participate in the earnings of the association.\n\t\tUnless and until otherwise ordered by the association at any general or special meeting the board of directors shall annually apportion the net earnings by first paying dividends on the paid-up capital stock not exceeding eight per centum per annum, and by then setting aside not less than ten per centum of the remaining net earnings for a reserve fund until an amount has accumulated in the reserve fund equal to thirty per centum of the paid-up capital stock, and five per centum of the then remaining net earnings for an educational fund to be used in teaching cooperation; and shall apportion the remainder of such net profits by uniform dividends to its stockholders upon the amount of purchases of such association from its stockholders, and sales by the association to its stockholders or for their account, and upon the wages and salaries of employees, and one-half of such uniform dividend to cooperating nonstockholders unless otherwise provided by the bylaws of such association as follows: If the association be engaged in the mercantile business, then to the extent the business is so conducted, dividends, except as hereinafter otherwise provided, shall be paid as above provided to cooperating nonstockholders only upon the amount of their purchases and not upon the purchases made by the association. If the association be engaged to any extent in the purchase and sale of products of farm or orchard or as selling agent of such products, or if the association be a productive association, such as a creamery, cannery or factory, and the like, dividends to such extent shall be paid as above provided to cooperating nonstockholders who furnish such products upon the amounts of such products so furnished and not upon sales by the association.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14216,"edition_id":1,"name":"Cooperative Associations Generally","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13350,"metadata":{},"date_created":"2026-06-26 03:47:19","date_modified":"2026-06-26 03:47:19","permalink":{"id":149521,"object_type":"structure","relational_id":14216,"identifier":"1","token":"13.1\/3\/1","url":"\/13.1\/3\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13350,"edition_id":1,"name":"Cooperative Associations","identifier":"3","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:44:41","date_modified":"2026-06-26 03:44:41","permalink":{"id":149519,"object_type":"structure","relational_id":13350,"identifier":"3","token":"13.1\/3","url":"\/13.1\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72299,"structure_id":14216,"section_number":"13.1-301","catch_line":"Organization of cooperative associations; purposes; name; par value stock required","url":"\/13.1-301\/","token":"13.1\/3\/1\/13.1-301","metadata":false},{"id":55416,"structure_id":14216,"section_number":"13.1-301.1","catch_line":"Amendments to articles of incorporation","url":"\/13.1-301.1\/","token":"13.1\/3\/1\/13.1-301.1","metadata":false},{"id":82162,"structure_id":14216,"section_number":"13.1-301.2","catch_line":"Adoption, change or repeal of bylaws; subject matter","url":"\/13.1-301.2\/","token":"13.1\/3\/1\/13.1-301.2","metadata":false},{"id":67915,"structure_id":14216,"section_number":"13.1-302","catch_line":"Limitation of individual stockholding","url":"\/13.1-302\/","token":"13.1\/3\/1\/13.1-302","metadata":false},{"id":64857,"structure_id":14216,"section_number":"13.1-303","catch_line":"Investment in other stock","url":"\/13.1-303\/","token":"13.1\/3\/1\/13.1-303","metadata":false},{"id":84790,"structure_id":14216,"section_number":"13.1-304","catch_line":"Purchase of business by issue of shares of stock","url":"\/13.1-304\/","token":"13.1\/3\/1\/13.1-304","metadata":false},{"id":67196,"structure_id":14216,"section_number":"13.1-305","catch_line":"Rights of subscribers before full payment","url":"\/13.1-305\/","token":"13.1\/3\/1\/13.1-305","metadata":false},{"id":67757,"structure_id":14216,"section_number":"13.1-306","catch_line":"Distribution of earnings","url":"\/13.1-306\/","token":"13.1\/3\/1\/13.1-306","metadata":false},{"id":80181,"structure_id":14216,"section_number":"13.1-307","catch_line":"Permissible limitation of stock ownership or voting rights","url":"\/13.1-307\/","token":"13.1\/3\/1\/13.1-307","metadata":false},{"id":76923,"structure_id":14216,"section_number":"13.1-308","catch_line":"Limitation of use of \"cooperative\" in corporate name","url":"\/13.1-308\/","token":"13.1\/3\/1\/13.1-308","metadata":false},{"id":85256,"structure_id":14216,"section_number":"13.1-309","catch_line":"Other cooperatives may come under article","url":"\/13.1-309\/","token":"13.1\/3\/1\/13.1-309","metadata":false},{"id":84047,"structure_id":14216,"section_number":"13.1-309.1","catch_line":"Foreign cooperatives","url":"\/13.1-309.1\/","token":"13.1\/3\/1\/13.1-309.1","metadata":false},{"id":65730,"structure_id":14216,"section_number":"13.1-310","catch_line":"Cooperative associations may give certain liens on rotating stocks","url":"\/13.1-310\/","token":"13.1\/3\/1\/13.1-310","metadata":false},{"id":83081,"structure_id":14216,"section_number":"13.1-311","catch_line":"Taxation","url":"\/13.1-311\/","token":"13.1\/3\/1\/13.1-311","metadata":false},{"id":81575,"structure_id":14216,"section_number":"13.1-311.1","catch_line":"Provisions relating to dissolution of and revocation of certificates of associations","url":"\/13.1-311.1\/","token":"13.1\/3\/1\/13.1-311.1","metadata":false}],"previous_section":{"id":67196,"structure_id":14216,"section_number":"13.1-305","catch_line":"Rights of subscribers before full payment","url":"\/13.1-305\/","token":"13.1\/3\/1\/13.1-305","metadata":false},"next_section":{"id":80181,"structure_id":14216,"section_number":"13.1-307","catch_line":"Permissible limitation of stock ownership or voting rights","url":"\/13.1-307\/","token":"13.1\/3\/1\/13.1-307","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-306\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1956, chapter 428.<\/p>","references":false,"refers_to":[{"id":72299,"section_number":"13.1-301","catch_line":"Organization of cooperative associations; purposes; name; par value stock required","order_by":null,"url":"\/13.1-301\/"}],"permalink":{"id":149551,"object_type":"law","relational_id":67757,"identifier":"13.1-306","token":"13.1\/3\/1\/13.1-306","url":"\/13.1-306\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-306\/","token":"13.1\/3\/1\/13.1-306","dublin_core":{"Title":"Distribution of earnings","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-306","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The net earnings and profits of an association organized pursuant to \u00a7 13.1-301<\/a> shall be apportioned, distributed and applied as the association may at any general or special meeting direct. The association may in its bylaws prescribe the terms and conditions, rules and regulations under and by which the stockholders or employees, or cooperating nonstockholders may participate in the earnings of the association.\n\t\tUnless and until otherwise ordered by the association at any general or special meeting the board of directors shall annually apportion the net earnings by first paying dividends on the paid-up capital stock not exceeding eight per centum per annum, and by then setting aside not less than ten per centum of the remaining net earnings for a reserve fund until an amount has accumulated in the reserve fund equal to thirty per centum of the paid-up capital stock, and five per centum of the then remaining net earnings for an educational fund to be used in teaching cooperation; and shall apportion the remainder of such net profits by uniform dividends to its stockholders upon the amount of purchases of such association from its stockholders, and sales by the association to its stockholders or for their account, and upon the wages and salaries of employees, and one-half of such uniform dividend to cooperating nonstockholders unless otherwise provided by the bylaws of such association as follows: If the association be engaged in the mercantile business, then to the extent the business is so conducted, dividends, except as hereinafter otherwise provided, shall be paid as above provided to cooperating nonstockholders only upon the amount of their purchases and not upon the purchases made by the association. If the association be engaged to any extent in the purchase and sale of products of farm or orchard or as selling agent of such products, or if the association be a productive association, such as a creamery, cannery or factory, and the like, dividends to such extent shall be paid as above provided to cooperating nonstockholders who furnish such products upon the amounts of such products so furnished and not upon sales by the association.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISTRIBUTION OF EARNINGS (\u00a7 13.1-306)\n\nThe net earnings and profits of an association organized pursuant to \u00a7 13.1-301\nshall be apportioned, distributed and applied as the association may at any\ngeneral or special meeting direct. The association may in its bylaws prescribe\nthe terms and conditions, rules and regulations under and by which the\nstockholders or employees, or cooperating nonstockholders may participate in the\nearnings of the association.\n\t\tUnless and until otherwise ordered by the association at any general or\nspecial meeting the board of directors shall annually apportion the net earnings\nby first paying dividends on the paid-up capital stock not exceeding eight per\ncentum per annum, and by then setting aside not less than ten per centum of the\nremaining net earnings for a reserve fund until an amount has accumulated in the\nreserve fund equal to thirty per centum of the paid-up capital stock, and five\nper centum of the then remaining net earnings for an educational fund to be used\nin teaching cooperation; and shall apportion the remainder of such net profits\nby uniform dividends to its stockholders upon the amount of purchases of such\nassociation from its stockholders, and sales by the association to its\nstockholders or for their account, and upon the wages and salaries of employees,\nand one-half of such uniform dividend to cooperating nonstockholders unless\notherwise provided by the bylaws of such association as follows: If the\nassociation be engaged in the mercantile business, then to the extent the\nbusiness is so conducted, dividends, except as hereinafter otherwise provided,\nshall be paid as above provided to cooperating nonstockholders only upon the\namount of their purchases and not upon the purchases made by the association. If\nthe association be engaged to any extent in the purchase and sale of products of\nfarm or orchard or as selling agent of such products, or if the association be a\nproductive association, such as a creamery, cannery or factory, and the like,\ndividends to such extent shall be paid as above provided to cooperating\nnonstockholders who furnish such products upon the amounts of such products so\nfurnished and not upon sales by the association.\n\nHISTORY: Code 1950, \u00a7 13-243; 1956, c. 428.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}