§ 7-58-1301 — Derivative action

(1) A member may maintain a derivative action
to enforce a right of a limited cooperative association if:

(a) The member demands in a record that the association bring an action to
enforce the right; and

(b) Any of the following occur:

(I) The association does not, within ninety days after the association receives
the demand, agree to bring the action;

(II) The association notifies the member in a record that it has rejected the
demand;

(III) Irreparable harm to the association would result by waiting ninety days
after the association receives the demand; or

(IV) The association agrees to bring an action demanded and fails to bring
the action within a reasonable time.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 809, � 1, effective April 2, 2012.