21-2985. Judicial dissolution.

209 words·~1 min read·/ne/chapter-21/21-2985

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

A district court may dissolve a limited cooperative association or order any action that under the circumstances is appropriate and equitable:

(1)In a proceeding by the Attorney General, if it is established that:

(a)The limited cooperative association obtained its articles of organization through fraud; or

(b)The limited cooperative association has continued to exceed or abuse the authority conferred upon it by law;

(2)In a proceeding by a member, if it is established that:

(a)The directors are deadlocked in the management of the limited cooperative association's affairs, the members are unable to break the deadlock, and irreparable injury to the limited cooperative association is occurring or is threatened because of the deadlock;

(b)The directors or those in control of the limited cooperative association have acted, are acting, or will act in a manner that is illegal, oppressive, or fraudulent;

(c)The members are deadlocked in voting power and have failed, for a period that includes at least two consecutive annual members' meetings, to elect successors to directors whose terms have expired; or

(d)The assets of the limited cooperative association are being misapplied or wasted; or

(3)In a proceeding by the limited cooperative association to have its voluntary dissolution continued under judicial supervision.