Notice and action on plan of merger by constituent limited cooperative association.

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(1) For a limited cooperative association to merge with another entity, a plan of merger must be approved by a majority vote of the board of directors or a greater percentage if required by the association's articles or bylaws.

(2) The board of directors shall call a members meeting to consider a plan of merger approved by the board, hold the meeting not later than ninety days after approval of the plan by the board, and mail or otherwise transmit or deliver in a record to each member:

  1. The plan of merger, or a summary of the plan and a statement of the manner in whicha copy of the plan in a record may be reasonably obtained by a member;

  2. A recommendation that the members approve the plan of merger or, if the boarddetermines that because of conflict of interest or any other reason it should not make a favorable recommendation, the basis for that determination;

  3. A statement of any condition of the board's submission of the plan of merger to themembers; and

  4. Notice of the meeting at which the plan of merger will be considered, which noticemust 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. 815, § 1, effective April 2, 2012.


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