16-16-1206. Winding up.
209 words·~1 min read·
/ut/title-16/chapter-16/16-16-1206A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 7/1/2024
16-16-1206. Winding up.
(1)A limited cooperative association continues after dissolution only for purposes of winding up the association's activities.
(2)In winding up a limited cooperative association's activities, the board of directors shall cause the association to:
(a)discharge the association's liabilities, settle and close the association's activities, and marshal and distribute the association's assets;
(b)preserve the association or its property as a going concern for no more than a reasonable time;
(c)prosecute and defend actions and proceedings;
(d)transfer association property; and
(e)perform other necessary acts.
(3)After dissolution and upon application of a limited cooperative association, a member, or a holder of financial rights, a court may order judicial supervision of the winding up of the association, including the appointment of a person to wind up the association's activities, if:
(a)after a reasonable time, the association has not wound up the association's activities; or
(b)the applicant establishes other good cause.
(4)If a person is appointed pursuant to Subsection
(3)to wind up the activities of a limited cooperative association, the association shall promptly deliver to the division for filing an amendment to the articles of organization to reflect the appointment.
Amended by Chapter 401 , 2023 General Session