Winding up.

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  • (1) A limited cooperative association continues after dissolution only for purposes of winding up its activities.
  • (2) In winding up a limited cooperative association's activities, the board of directors shall cause the association to:
    • (a) discharge its liabilities, settle and close its activities, and marshal and distribute its assets;
    • (b) preserve the association or its property as a going concern for no more than a reasonable time;
    • (c) prosecute and defend actions and proceedings;
    • (d) transfer association property; and
    • (e) perform other necessary acts.
  • (3) After dissolution and upon application of a limited cooperative association, a member, or a holder of financial rights, the district court may order judicial supervision of the winding up of the association, including the appointment of a person to wind up the association's activities, if:
    • (a) after a reasonable time, the association has not wound up its activities; or
    • (b) the applicant establishes other good cause.
  • (4) If a person is appointed pursuant to Subsection (3) to wind up the activities of a limited cooperative association, the association shall promptly deliver to the division for filing an amendment to the articles of organization to reflect the appointment.




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