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Section 7112 - Distributions — Pennsylvania Law | CourtGPT
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  5. Chapter 71 - Cooperative Corporations Generallyextra - Chapter Notes/
  6. Section 7112 - Distributions
Pennsylvania Legal Code

Section 7112 - Distributions

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Notwithstanding section 5551 (relating to dividends prohibited; compensation and certain payments authorized), a cooperative corporation may make patronage rebates or other distributions to its members or patrons in conformity with the purposes for which it is incorporated. A patronage rebate or dividend that is, or is equivalent to, a reduction in the charge made by a cooperative corporation to a member for goods or services shall not constitute a dividend or distribution within the meaning of this part or any other provision of law.