16-16-1504. Disposition of assets.

243 words·~1 min read·/ut/title-16/chapter-16/16-16-1504·

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

(1)Subject to Subsection

(2), a disposition of assets under Section 16-16-1502 shall be approved by:

(a)at least two-thirds of the voting power of members present at a members meeting called under Subsection 16-16-1503(2) ; and

(b)if the limited cooperative association has investor members, at least a majority of the votes cast by patron members, unless the organic rules require a greater percentage vote by patron members.

(2)The organic rules may require that the percentage of votes under Subsection (1)(a) is:

(a)a different percentage that is not less than a majority of members voting at the meeting;

(b)measured against the voting power of all members; or

(c)a combination of Subsections (2)(a) and

(b).

(3)Subject to any contractual obligations, after a disposition of assets is approved and at any time before the consummation of the disposition, a limited cooperative association may approve an amendment to the contract for disposition or the resolution authorizing the disposition or approve abandonment of the disposition:

(a)as provided in the contract or the resolution; and

(b)except as prohibited by the resolution, with the same affirmative vote of the board of directors and of the members as was required to approve the disposition.

(4)The voting requirements for districts, classes, or voting groups under Section 16-16-404 apply to approval of a disposition of assets under this part.

Amended by Chapter 378 , 2010 General Session