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A Cooperative is a non-profit organization, which is owned and operated by the people it serves. It runs on democratic principles with each member/subscriber having one vote toward the election of its board of directors. In order to induce patronage and to assure that the Cooperative will operate on a non-profit basis, the Cooperative is obligated to pay, by credit to a capital account, all such amounts in excess of operating costs and expenses. The capital credit funds are assignable to the books of the Cooperative and can be used for plant improvement, which reduces the need to borrow funds for this purpose.
Once a year, our Board of Directors decides if it will release these funds and distribute them to its members. In some ways, it’s much like getting a dividend check for having your phone service with the cooperative. A member’s check is proportionate to the amount of dollars they have spent in phone service billed through our office that year. None, a portion, or all of the capital credits earned in a particular year may be released.
Mid Century Telephone Co-operative has nine elected representatives on the Board of Directors representing 14 exchanges.
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