16-16-1203. Judicial dissolution.

235 words·~1 min read·/ut/title-16/chapter-16/16-16-1203

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

Effective 7/1/2024

(1)The attorney general may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration , to dissolve a limited cooperative association if:

(a)the association obtained the association's articles of organization through fraud; or

(b)the association has continued to exceed or abuse the authority conferred upon the corporation by law.

(2)A member may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration , to dissolve a limited cooperative association if:

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

(b)the directors or those in control of the 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 to elect successors to directors whose terms have expired for two consecutive periods during which annual members meetings were held or were to be held; or

(d)the assets of the association are being misapplied or wasted.

(3)If an action is brought under this section, a court may dissolve a limited cooperative association or order an action that under the circumstances is appropriate or equitable.

Amended by Chapter 401 , 2023 General Session