§ 501.601 — Existing associations

Iowa § 501.601

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 501: CLOSED COOPERATIVES

Text

1. As used in this section:
a. “Dissenting member” means a voting member who votes in opposition to the plan of
conversion and who makes a demand for payment as provided in this section not later than
the deadline for members to vote to approve the plan of conversion.
b. “Issueprice”meanstheamountpaidforaninterestintheassociationorthevaluestated
in a notice of allocation of patronage refunds.
2. An association organized under chapter 497, 498, or 499 may adopt this chapter
pursuant to the following procedures:

a. The board must adopt a plan of conversion that specifies the changes in the articles
to comply with this chapter, the effect of the conversion on the association’s outstanding
members’ equity, and the option or options available to the equity holders who do not want
to continue their investment in the association.
b. The members must approve the plan of conversion by a vote of two-thirds of the votes
cast in which vote a majority of all votes are cast.
3. a. Thecooperativeshallredeemallofthemembers’equityheldbydissentingmembers
at its issue price within one year after the conversion to this chapter is effective.
b. An equity holder who is not a voting member shall have the same rights as a dissenting
memberiftheequityholdermakesademandforpaymentpursuanttoparagraph“a”notlater
than the deadline for members to vote to approve the plan of conversion.
c. The association shall notify all equity holders of their rights pursuant to paragraph “a”
at the same time the association notifies the members of the member meeting to vote on the
plan of conversion.