Adopted 5/1/2010 Pursuant to Board Policy B.2.3.1
Definition of an Owner
- Members of a cooperative
- Joining fees and invested capital
- "In good standing"
- Active/inactive status
- Donated capital
- Invested
- Investing
- Group/organization
- Investing capital
- Delinquent status
- Account Closure
Credit for Surcharges on Receipts
Owner Resignation and Capital Refunds
- Resignation requests
- Deceased owners
- Refund guidelines
- Just cause of expulsion
- Termination of shopping privileges
- Invested/investing owner agreement
- Group/organization agreement
Definition of an
Owner
Because co-op members supply capital and participate democratically,
Wheatsville's members are its owners. Therefore, the terms owner and
member are sometimes used interchangeably at Wheatsville. Ownership
in Wheatsville Co-op commences upon signing a membership agreement
and payment of membership fees and/or investment of capital as
provided in these guidelines.
A non-refundable joining fee is assessed to all
owners to help cover administrative costs of membership. Joining fees
are treated as income to the co-op. Capital contribution requirements
established in this document for investment members are intended to
ensure a sound level of owner investment in Wheatsville and may be
changed from time to time by the board of directors. Invested owner
capital becomes part of the co-op's equity but it is refundable upon
an owner's resignation from the co-op, provided the total capital
remaining is adequate to meet current and projected needs.
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Owner
Status
To remain "in good standing," an owner must invest the required
capital in a timely manner and continue to provide the co-op with a
current mailing address. Owners who fail to meet these conditions may
be denied owner benefits.
Prior to June 1, 2008, if mail was returned and
we had not received an updated address after two years, then the
membership Prior to June 1, 2008, if mail was returned and we had not
received an updated address after two years, then the membership
account was changed from "active" status to "inactive" status, and
any capital associated with the account was considered donated to
Wheatsville as provided in our bylaws and the membership agreement at
that time. Donated capital will revert to the owner's account without
penalty once a current address has been reestablished.
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Categories
of Ownership
Invested, Investing, and Annual are the different categories of
membership available to owners. Wheatsville also has group
memberships for qualifying organizations. All of these categories of
membership convey ownership rights and responsibilities.
Invested:
- Owner has paid in full a $15 joining fee, and
- Owner has invested, in full, the capital requirement of $55.
Investing:
Individual Account
- Owner has paid in full a $15 joining fee, and
- Owner is investing at least $10/month (minimum amount) toward the capital requirement of $55.
Group/Organization:
- Group has paid in full a $15 joining fee, and
- Group has invested in full the capital requirement as determined by Wheatsville's general manager. This capital requirement takes into consideration:
- The history the organization has had with Wheatsville,
- The group's ability to invest,
- The number of people who will realize benefits from membership, and
- For what purposes the membership will be used.
- The membership agreement for group/organization members must specify the initial investment requirement, who will be entitled to benefits of membership, and a designated individual to represent the group. All group memberships have one vote, which is cast by the individual designated in the membership agreement.
- To be eligible for group membership, an entity must be a non-profit organization or organized "on a cooperative basis," as provided in the Texas Business Organizations Code, section 251.151.
All Investing Owners are required to pay a minimum of $10 capital per month until they are fully invested. This process should take no more than six months (a.k.a. investing "in a timely manner"). Upon completion of capital payments, the account will be changed from "investing" to "invested."
Failure to invest fully within the allotted
time will result in obtaining a delinquent or "Payment Required"
status, whereupon owner benefits will be denied until the capital
balance is paid in full. At least once a year beginning with our
fiscal year ending May 31, 2009, the membership roster of both active
and inactive (donated) accounts will be reviewed for delinquent
Investing Owners. Any delinquent account with a total paid-in amount,
including both joining fee and investment, of less than $70 will be
closed and the invested capital will be refunded to the owner.
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The
Gray Card
In 1995 Wheatsville discontinued the Gray Card, which was exclusively
available to senior citizens over the age of 62. This type of
membership did not supply the co-op with capital or a joining fee,
but its cardholders were eligible to receive all owner benefits.
Although we no longer open new Gray Card accounts, we still honor
those which are still active and in good standing.
Once a year, Wheatsville will review our roster for Gray Card accounts which have seen no activity within the year. A correspondence letter requesting the owner's confirmation of continued interest in holding their membership will then be mailed out to those accounts. If a confirmation reply is not received by Wheatsville, the status of that account will be changed from active to closed.
Although we no longer open new Gray Card
accounts, senior citizens over the age of 62 who do not hold
memberships at Wheatsville may shop at owner prices.
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Evidence
of Membership
Each membership account is assigned a number that is used to track
information about the account and owner patronage. It is the owner's
responsibility to provide the correct number in transactions with the
co-op, and owners may be required to show their membership cards to
verify their eligibility for benefits. New owners may use their copy
of their joining application as temporary evidence of membership
until their membership card arrives. Memberships are not
transferable.
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Credit
for Surcharges on Receipts
Shoppers may collect their register receipts and, within one year of
the transaction date on the receipts, apply the non-owner surcharge
on the receipts toward payment of a joining fee and/or investment in
any membership category. Receipt surcharges may not be used as
monthly payments for investing owners, and have no value beyond the
total cost of an ownership.
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Owner
Benefits
Benefits of Wheatsville Co-op's owners include, but are not limited
to:
Patronage
Rebates
The Internal Revenue Code provides a special opportunity for
member-owned cooperatives to reduce their taxable income by declaring
a patronage dividend, or rebate, allocating a portion of the members'
purchases back to them at the end of the year. This potentially
benefits both the individual members and the co-op as a whole. Each
year the board of directors determines whether a rebate is
appropriate and, if so, the amount of the patronage allocation.
Typically, 20% of the total allocation is paid out to fully invested
members based on their patronage during the fiscal year and 80% of
the allocation is retained by the co-op as additional equity. The
retained portion is allocated to individual member accounts in the
proportion their patronage bears to the total qualifying patronage.
This retained patronage equity will remain on the books until the
co-op is dissolved as an organization or until such time as the board
of directors may decide to distribute all or part of it back to the
member accountholders or otherwise allocate it in accordance with
legal procedures. Rebates are generally restricted to fully invested
owners in good standing who have sufficient patronage to justify the
expense of distributing their portion.
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Invested and Investing Owners sharing a household may request to accumulate patronage under one account. A Household Affiliation agreement must be signed by all parties involved and will designate one of the individual owners to be listed as payee on the patronage check if one is issued. This affiliation may be cancelled at any time upon request by one or more members of the household or if the household members cease to reside at the same address.
Beginning in March, 2009, all pre-existing "Household Accounts" will be divided into separate individual memberships and linked with a household affiliation. Any patronage checks issued will be made out to the individual who was listed as the primary account holder at the time the accounts were separated.
To cancel or modify an existing household affiliation, please contact the Membership Coordinator.
Owner
Responsibilities
Ownership of Wheatsville carries certain responsibilities. Owners who
choose to use the services of Wheatsville must accept these
responsibilities in order to maintain a prosperous co-operative.
To remain in good standing, all owners must invest in a timely
manner and maintain a current address. Other owner
responsibilities include, but are not limited to the following:
Voting
All owners are entitled to one democratic vote in co-op elections,
which are held at least once a year, and are strongly encouraged to
become informed and to participate in the voting process.
Group/organization accounts get one vote, cast by the designated
representative of the group.
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Owner
Resignation and Capital Refunds
A resignation will be granted to any owner who completes a
resignation request. The owner's account will be closed and any
refundable capital will be returned to the owner at the address
provided with the request, according to the guidelines set forth
below. Upon request with proper documentation such as letters
testamentary, Wheatsville will close the account of a deceased owner
and refund membership capital to the legal representative of the
estate.
Refund Guidelines
- Refund requests must be submitted in writing and must specify the name of the person making the request, the account number, and the address to which the refund should be sent.
- Refunds will normally be mailed within thirty days after we receive the written request.
- Board policy B.2.8.2 provides that no capital refund request by any member shall be paid out if it would cause the total paid-in member capital and donated capital to fall below an amount considered adequate to capitalize Wheatsville's current and projected needs, currently $400,000.
- If refund requests are received that cannot be honored because they would cause total capital to fall below the designated minimum, they will be logged and paid in the order the requests were received, as new member capital is paid in to replace the capital being paid out.
- Policy B.2,8 will not be interpreted to prevent the refund of excess capital (i.e., amounts paid on individual accounts in excess of the full investment requirement for those accounts), upon receipt of a proper refund request.
These refund guidelines do not apply to
retained member patronage, which may continue to be held as member
equity, subject to the same treatment as retained allocations to all
other member patrons, even after the membership account is
closed.
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Expulsion
of Owners
Wheatsville bylaws provide for the possible expulsion of an owner for
just cause. Examples of just cause include, but are not limited
to:
The board of directors will review the proposed
expulsion of any owner on a case-by-case basis, taking into account
the facts and circumstances at the time, and then proceeding under
the bylaws in the best interest of Wheatsville. The general manager
is authorized to terminate shopping privileges for any member whose
behavior is detrimental to the proper functioning of the store or for
other just cause. Upon referral or appeal to the board of directors,
the board will determine whether expulsion procedures should be
initiated.
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Invested/Investing Owner Agreement:
- I agree to pay the joining fee and capital requirement in full, or make timely capital payments.
- I have the right to vote in co-op elections. I will respect the rights and opinions of other owners. I agree to abide by all decisions made in accordance with the bylaws, certificate of formation, and board policy.
- I understand that co-op policies, including those concerning owner investments and refunds, are subject to change by the board of directors and/or the vote of the membership.
- I will stay informed and if I fail to keep the co-op informed of my current address, I may become ineligible to receive owner benefits, including patronage rebates.
- My capital balance due is $_________, which is to be paid in installments of $10 or more per month.
Group/Organization Agreement:
- We agree to pay the joining fee and capital requirement in full.
- We are entitled to one democratic vote in co-op elections. We will respect the rights and opinions of other owners. We agree to abide by all decisions made in accordance with the bylaws, certificate of formation, and board policy.
- We understand that co-op policies, including those concerning owner investments and refunds, are subject to change by the board of directors and/or the vote of the membership.
- We will stay informed and if we fail to keep the co-op informed of our current address, we may become ineligible to receive owner benefits, including patronage rebates.