§ 7-58-1203 — Judicial dissolution - grounds

(1) A limited cooperative
association may be dissolved in a proceeding brought in court by the attorney
general if it is established that:

(a) The association obtained its articles of organization through fraud; or

(b) The association has continued to exceed or abuse the authority conferred
upon it by law.

(2) A limited cooperative association may be dissolved in a proceeding
brought in court by a member if it is established that:

(a) The directors are deadlocked in the management of the association's
affairs, the members are unable to break the deadlock, and irreparable injury to the
association is occurring or is threatened because of the deadlock;

(b) The directors or those in control of the association have acted, are acting,
or will act in a manner that is illegal, oppressive, or fraudulent;

(c) The members are deadlocked in voting power and have failed to elect
successors to directors whose terms have expired for two consecutive periods
during which annual members meetings were held or were to be held; or

(d) The assets of the association are being misapplied or wasted.

(3) A limited cooperative association may be dissolved in a proceeding
brought in court by a creditor if it is established that:

(a) A creditor's claim has been reduced to judgment, the execution on the
judgment has been returned unsatisfied, and the association is insolvent; or

(b) The association is insolvent and the association has admitted in writing
that a creditor's claim is due and owing.

(4) In lieu of dissolution in a proceeding described in subsection (1), (2), or (3)
of this section, the court may order any other relief that is appropriate and
equitable.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 804, � 1, effective April 2, 2012.