Non-Member Preferred Equity

As discussed in the “preferred stock” section, cooperatives can issue preferred stock to both members and non-members.  Preferred stock is typically non-voting and has proportional-to-capital dividends.  Preferred stock has a senior claim on assets in respect to common stock and liquidation and typically has a senior claim on dividends.  Approval rights or performance benchmarks may also be required before the cooperative can redeem common equity.  Preferred stock may or may not have a redemption date. 

Preferred shareholders may be given

Unallocated Equity

Phil Kenkel

Bill Fitzwater Cooperative Chair, Oklahoma State University

In a recent national project, academic researchers, cooperative managers and members, USDA, agricultural foundations and other stakeholders collaborated to identify the critical issues facing agricultural cooperatives.  A two-stage Delphi survey was conducted, followed by expert panel sessions in Washington, D.C. and Minneapolis, Minnesota. The material below summarizes some of the findings from the project.

Unallocated equity, also called unallocated reserves and retained earnings, is permanent equity capital that is not assigned …