351.1192. Involuntary dissolution, when.

247 words·~1 min read·/mo/chapter-351/351-1192

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

351.1192. Involuntary dissolution, when. — 1. A cooperative may be dissolved involuntarily by a decree of a court in this state in an action filed by the attorney general if it is established that:

(1)The articles and certificate of organization were procured through fraud;

(2)The cooperative was organized for a purpose not permitted by sections 351.1000 to 351.1228 or prohibited by state law;

(3)The cooperative has flagrantly violated a provision of sections 351.1000 to 351.1228 , has violated a provision of sections 351.1000 to 351.1228 more than once, or has violated more than one provision of sections 351.1000 to 351.1228 ; or

(4)The cooperative has acted, or failed to act, in a manner that constitutes surrender or abandonment of the cooperative's privileges, or enterprise.

2. An action may not be commenced under subsection 1 of this section until forty-five days after notice to the cooperative by the attorney general of the reason for the filing of the action. If the reason for filing the action is an act that the cooperative has committed, or failed to commit, and the act or omission may be corrected by an amendment of the articles or bylaws or by performance of or abstention from the act, the attorney general shall give the cooperative thirty additional days to make the correction before filing the action. If the cooperative makes the correction within such thirty-day period, the attorney general shall not file the action.

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(L. 2011 S.B. 366)