Disposition of assets; right to secure debts.

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185.38 Disposition of assets; right to secure debts.

(1) Except as authorized by the members, the board may not dispose of all or substantially all of a cooperative's assets. At any meeting the members may authorize the disposition of all or substantially all of a cooperative's assets if:

(a) Notice that such disposition will be considered at such meeting has been given to all persons entitled to vote thereon; and

(b) Such disposition has been approved by two-thirds of those entitled to vote thereon voting at the meeting.

(1m)

(a) Except as authorized by the members, the board may not dispose of a cooperative's assets under any of the following circumstances:

1. Other than in the ordinary course of business.

2. In a manner that jeopardizes the purpose for which the cooperative was created or its financial vitality.

(b) At any meeting the members may authorize the disposition of a cooperative's assets under circumstances described in par. (a) if all of the following apply:

1. Notice that the disposition will be considered at the meeting has been given to all persons entitled to vote on the matter.

2. The disposition has been approved by two-thirds of those entitled to vote on the matter who vote at the meeting.

(2) Unless the bylaws provide otherwise, the board may secure payment of a cooperative's debts by mortgaging the cooperative's rights, privileges, authority and franchises, revenues and other property.

History: 1985 a. 30 s. 42; 2017 a. 76.


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