- The capital of an association limited by shares shall be composed of
- Hares (fully paid for) and includes preference shares
- Loan capital
- Retained earnings including reserves;
- Contributed surplus.
- The capital of an association limited by membership shall be the same as that for an association limited by shares, except that it shall have no shares.
- The shares in an association limited by shares shall have the par value stated in the Articles of Incorporation and by-laws, but any number of shares may be issued.
- Members desiring to dispose of their shares or member loans must first offer them to the association through the Board of Directors who are authorized to redeem them at a price not exceeding their par value or book value, whichever is less. If the association through the Board of Directors is unable or does not desire to redeem such shares or member loans, the member shall have the right to dispose of them to any person approved by the Board of Directors. Redemption of shares or member loans shall be subject to such other provisions pertaining thereto in the by-laws of the association.