eligible worker-owned cooperative
Defined in 2 places of the United States Code.
The term “eligible worker-owned cooperative” has the meaning given to such term by section 1042(c)(2).
Source
- 1994–present26 U.S.C. § 4978Internal Revenue Code · Tax on certain dispositions by employee stock ownership plans and certain cooperatives · for purposes of this section
The term “eligible worker-owned cooperative” means any organization—
(A) to which part I of subchapter T applies,
(B) a majority of the membership of which is composed of employees of such organization,
(C) a majority of the voting stock of which is owned by members,
(D) a majority of the board of directors of which is elected by the members on the basis of 1 person 1 vote, and
(E) a majority of the allocated earnings and losses of which are allocated to members on the basis of—
(i) patronage,
(ii) capital contributions, or
(iii) some combination of clauses (i) and (ii).
Source
- 1994–present26 U.S.C. § 1042Internal Revenue Code · Sales of stock to employee stock ownership plans or certain cooperatives · for purposes of this section