§ 7-58-1504 — Disposition or encumbrance of assets

(1) Subject to subsection
(2) of this section, a disposition or encumbrance of assets under section 7-58-1502
must be approved by:

(a) At least a majority of the voting power of members present at a members
meeting called under section 7-58-1503 (1)(b); and

(b) If the limited cooperative association has investor members, at least a
majority of the votes cast by patron members, unless the articles or bylaws require
a greater percentage vote by patron members.

(2) The articles or bylaws may require that the percentage of votes required
under paragraph (a) of subsection (1) of this section is:

(a) A different percentage that is not less than a majority of members voting
at the meeting;

(b) Measured against the voting power of all members; or

(c) A combination of paragraphs (a) and (b) of this subsection (2).

(3) Subject to any contractual obligations, after a disposition or
encumbrance of assets is approved and at any time before the consummation of the
disposition or encumbrance, a limited cooperative association may approve an
amendment to the contract for the disposition or encumbrance or the resolution
authorizing the disposition or encumbrance or approve abandonment of the
disposition or encumbrance:

(a) As provided in the contract or the resolution; and

(b) Except as limited or prohibited by the resolution, with the same
affirmative vote of the board of directors and of the members as was required to
approve the disposition or encumbrance.

(4) The voting requirements for districts, classes, or voting groups under
section 7-58-404 apply to approval of a disposition of assets under this part 15.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 812, � 1, effective April 2, 2012.