(1) After memberships have been issued, dissolution of a cooperative may be authorized in the following manner:
The board, by a two-thirds majority vote of all its members, shall first adopt a resolution recommending dissolution that conforms to the requirements of paragraph (c) of this subsection (1);
The board shall submit the resolution adopted pursuant to paragraph (a) of this subsection (1) to the members;
The resolution adopted pursuant to paragraph (a) of this subsection (1) shall state thereasons why the termination of the affairs of the cooperative is deemed advisable, the time by which it should be accomplished, whether or not the board may revoke dissolution, and the names of three persons and two alternates to act as trustees in liquidation who shall have all the powers of the board to do all things they deem necessary for the efficient distribution of claims to creditors, in liquidation and termination of the affairs of the cooperative, including the sale of all or substantially all of the cooperative's property as they deem necessary if the resolution also provides for a sale of the property. Such trustees and alternates need not be members of the cooperative. Any vacancies in the trusteeship shall be first filled by the designated alternates and then may be filled by such persons as may be designated by the remaining trustees.
The board may condition the effectiveness of the dissolution on any basis.
The cooperative shall give notice to each member of the regular or special meeting atwhich the resolution to dissolve will be voted upon. The notice shall state that the purpose, or one of the purposes, of the meeting is to consider the proposal to dissolve the cooperative. The notice shall contain or be accompanied by a copy of the proposal or a summary thereof, including a description of the proposed distribution of the cooperative's assets and, if voting by mail is permitted, with a mail ballot attached to it.
The proposal to dissolve shall be approved by a two-thirds majority vote of the members present and voting in person or in any other manner authorized by the cooperative pursuant to section 7-56-305 (1) at a regular or special meeting called for such purpose. A cooperative shall not permit proportional voting to apply to a vote of members on a resolution to dissolve pursuant to this section.
Source: L. 96: Entire article R&RE, p. 522, § 1, effective July 1. L. 98: (1)(a) amended,
p. 613, § 7, effective July 1. L. 2007: (3) amended, p. 224, § 10, effective May 29.
Editor's note: This section is similar to former § 7-55-114 as it existed prior to 1996.