Equity Redemption Plans Used by Cooperatives

  • Glynn McBride


Our concern in the preceding chapters was with capital accumulation or formation in amounts to meet the requirements of our cooperative for operations and for longer-term capital needs. Plans were considered such as retained patronage earnings and member capital retains. All were considered in relation to the unique features of the cooperative corporation, especially from the standpoint of the implications of the member-user-owner trio in this unique institutional arrangement. A definite concern stemming from this uniqueness is with keeping investments by members in their cooperative in line with their use of the cooperative—the so-called rule of proportionality.


Cash Flow Base Period Equity Capital Base Capital Agricultural Cooperative 


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Copyright information

© The AVI Publishing Company, Inc. 1986

Authors and Affiliations

  • Glynn McBride
    • 1
  1. 1.Department of Agricultural EconomicsMichigan State UniversityEast LansingUSA

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