Financial rights
Financial rights are the part of a membership interest that covers profit and loss shares and distributions; chapter 308B makes them transferable, subject to restrictions, without giving the assignee governance rights.
Chapter 308B includes a member's financial rights, and the right to assign them, in a membership interest § 308B.005, subd. 16 P1. Financial rights are transferable in whole or part, subject to restrictions; assignment gives the assignee only the assigned share of profits, losses and distributions, not membership, governance rights, or control of the assignor's vote § 308B.605, subds. 1 and 2 P1. Restrictions may be imposed through the instruments listed in subdivision 3, but are subject to its notice, record, reasonableness, prior-owner and secured-enforcement conditions—not every restriction binds every assignee.
The patron collective's default 60-percent financial-rights floor in § 308B.601, subdivision 3, is distinct from § 308B.721's default 50-percent floors for annual profit allocations and distributions. Each permits a 15-percent floor only through its specified authorization route P1. See Patron membership interest and Raise member equity and capital.
The chapter does not separately define "financial rights" in section 308B.005.
Statute sections referenced
- § 308B.005 DEFINITIONS.
- § 308B.601 MEMBERSHIP INTERESTS.
- § 308B.605 ASSIGNMENT OF FINANCIAL RIGHTS.
- § 308B.721 ALLOCATIONS AND DISTRIBUTIONS TO MEMBERS.
Related
Sources
- P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)