(1) For a limited cooperative association to dispose of or encumber assets under section 7-58-1502:
A majority of the board of directors, or a greater percentage if required by the articlesor bylaws, must approve the proposed disposition or encumbrance; and
The board of directors must call a members meeting to consider the proposed disposition or encumbrance, hold the meeting not later than ninety days after approval of the proposed disposition or encumbrance by the board, and mail or otherwise transmit or deliver in a record to each member:
The terms of the proposed disposition or encumbrance;
A recommendation that the members approve the disposition or encumbrance or, ifthe board determines that because of conflict of interest or any other reason it should not make a favorable recommendation, the basis for that determination;
A statement of any condition of the board's submission of the proposed dispositionor encumbrance to the members; and
Notice of the meeting at which the proposed disposition or encumbrance will beconsidered, which notice must be given in the same manner as notice of a special meeting of members.
Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 811, § 1, effective April 2, 2012.