21-2987. Voluntary dissolution by the board and members.

183 words·~1 min read·/ne/chapter-21/21-2987

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

In order to voluntarily dissolve:

(1)A resolution to dissolve shall be approved by a majority vote of the board of directors unless a greater vote is required by the articles of organization or bylaws;

(2)The board of directors shall mail or otherwise transmit or deliver in a record to each member:

(a)The resolution required by subdivision

(1)of this section;

(b)A recommendation that the members vote in favor of the resolution, unless the board determines because of conflict of interest or other special circumstances it should not make such a recommendation;

(c)If the board makes no recommendation, the basis of that decision; and

(d)A notice of the meeting in the same manner as a special members' meeting;

(3)Subject to section 21-2939 , the resolution to dissolve shall be approved by at least a two-thirds vote of patron members voting at the meeting and at least two-thirds vote of investor members voting at the meeting; and

(4)Unless otherwise provided in the resolution, the limited cooperative association is dissolved upon approval under subdivision

(3)of this section.