Handling Cooperative Losses
View the PDF version of this Cooperative Tax Brief here. When it comes to financial losses, many cooperatives are uncertain how to handle them. Because… Read More »Handling Cooperative Losses
View the PDF version of this Cooperative Tax Brief here. When it comes to financial losses, many cooperatives are uncertain how to handle them. Because… Read More »Handling Cooperative Losses
Since 2009, at least 14 cases have been filed against electric cooperatives over patronage capital (or capital credits) in eight states: Alabama, Arkansas, Georgia, Missouri,… Read More »Arkansas water co-op heads to court to settle dispute over capital credits
USDA Magazine Article Discusses Management of Capital Credits and Patronage Dividends The USDA publishes a bi-monthly magazine, Rural Cooperatives, which covers various issues encountered by… Read More »USDA Magazine Article Discusses Management of Capital Credits and Patronage Dividends
Who is entitled to vote as a cooperative member when a facility is composed of separately metered units? Does it matter whether residents of each unit are billed separately by the cooperative? Does the answer change when there are separate meters, but residents pay their pro rata portion to the facility’s owner, who remits payment to the cooperative? Read More »Member Voting and Multi-Meter Facilities
On November 29, 2012, Senator Udall of Colorado submitted a bill to amend Section 501(c)(12) as it relates to mutual ditch and irrigation companies. The… Read More »AHC Cooperative Tax Brief: Proposed Amendment to Section 501(c)(12) for Water Companies
This guest post was provided by Danielle Rodabaugh, chief editor of the Surety Bond Insider.
In most cases, surety bond insurance is used to protect consumers from companies that could harm them by committing fraud or failing to follow industry regulations. In some situations, however, bonds can be used to protect a business itself. Such is the case with utility bonds used within the energy and utility sector.Read More »Guest Post: A Guide to Surety Bonds in the Energy and Utility Sectors
AHC attorney Roland Hall was recently interviewed for an article on the trend toward more transparency and openness in cooperative governance. The article appeared in the July/August issue of the National Cooperative Business Association’s Cooperative Business Journal. Read More »AHC Attorney Discusses Cooperative Governance and Transparency Issues
In another lawsuit concerning cooperatives’ capital credit practices, a North Carolina trial court ruled in favor of a cooperative that we previously wrote about in another blog post.
The court ruled, based on the facts at issue, that the cooperative had no fiduciary duty to the plaintiffs, which were a group of deceased members’ estates. In addition, it declared that the cooperative had authority to adopt a procedure for retiring deceased members’ capital credits on an accelerated and discounted basis. However, it expressly did not rule on whether the cooperative, in practice, properly discounted the capital credits. In other words, the court reserved judgment on the specific manner of discounting the particular capital credits at issue in this case. Read More »Cooperative Litigation Update: N.C. Court Rules on Coop’s Discounting Program
Earlier this past July, the Texas Court of Appeals ruled on important aspects of the cooperative lawsuit concerning Denton County Electric Cooperative, Inc., d/b/a CoServ Electric (“CoServ”). The court ruled, among other things, that (i) the cooperative was not subject to certain statutory rules governing non-profit corporations, and (ii) the electric cooperative statute did not impose a fiduciary duty on the cooperative itself. Read More »Cooperative Litigation Update: Texas Cooperative Lawsuit Considered on Appeal
This blog post was prepared by guest blogger Tim Madsen of Survey & Ballot Systems.
A cooperative, by definition, is an association of people voluntarily united to meet a common goal through democratic process and voluntary membership. Democratic cooperative governance requires an elected board that sets policies and makes decisions that are in the best interest of its members. In order for this to happen, members must have the opportunity to participate in well-run, open elections.Read More »Guest Blog: Preparing Your Cooperative Staff for an Election