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How Do Oklahoma Cooperatives Manage Equity?

How Do Oklahoma Cooperatives Manage Equity?. Phil Kenkel Bill Fitzwater Cooperative Chair Oklahoma State University Advanced OCCD March 30, 2005. How Do We Redeem Equity?. Innovative Systems. Pool system with patrons over the trigger age receiving 20% of their balance for 5 years

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How Do Oklahoma Cooperatives Manage Equity?

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  1. How Do Oklahoma Cooperatives Manage Equity? Phil Kenkel Bill Fitzwater Cooperative Chair Oklahoma State University Advanced OCCD March 30, 2005

  2. How Do We Redeem Equity?

  3. Innovative Systems • Pool system with patrons over the trigger age receiving 20% of their balance for 5 years • All patrons receiving 2% of total equity • Several cooperatives set their redemption budget equal to their total amount of cash patronage

  4. Corporations and Trusts • Some cooperatives redeem when the principle owner is eligible • Some cooperatives only redeem equity when the trust/corporation is dissolved • Some allow equity to be transferred to children • Some redeem a portion of equity based on age and the percentage ownership in the corporation • Many cooperatives do not have a formal policy

  5. Membership Shares • Low = $10 • High = $1,000 • Average = $143 • Most allow patrons to earn their membership share

  6. Conclusions • Age of patron is the most common system followed by age of stock • Many cooperatives are currently only redeeming estates • Lots of variation in the details • Many managers indicated they were interested in looking at alternative systems

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