(1) Except as provided in this subsection (1) and section 7-58-405 (6), the articles and bylaws of a limited cooperative association may be amended only at a members meeting. An amendment requiring membership approval may be proposed by either:
A majority of the board of directors, or a greater percentage if required by the articlesor bylaws; or
One or more petitions signed by at least ten percent of the patron members or at leastten percent of the investor members.
(2) The board of directors shall call a members meeting to consider an amendment proposed pursuant to subsection (1) of this section. The meeting shall be held not later than ninety days following the proposal of the amendment by the board or receipt of a petition or petitions satisfying the requirements of this section. The board shall mail or otherwise transmit or deliver in a record to each member:
The proposed amendment, or a summary of the proposed amendment and a statementof the manner in which a copy of the amendment in a record may be reasonably obtained by a member;
A recommendation that the members approve the amendment, or, if the 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 amendment to themembers; and
Notice of the meeting at which the proposed amendment will be considered, whichshall be given in the same manner as notice for a special meeting of members.
Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 774, § 1, effective April 2, 2012.