§ 501.615 — Objection of members — purchase of interests upon demand

Iowa § 501.615

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

Text

1. If a member of a cooperative which is a party to a merger or consolidation files with
the cooperative, prior to or at the meeting of members at which the plan is submitted to a
vote, a written objection to the plan of merger or consolidation, and votes in opposition to the
plan, and the member, within twenty days after the merger or consolidation is approved by

the other members, makes written demand on the surviving or new cooperative for payment
of the fair value of that member’s interest as of the day prior to the date on which the vote
was taken approving the merger or consolidation, the surviving or new cooperative shall pay
to the member, upon surrender of that person’s certificate of membership or interests in the
cooperative, the fair value of that person’s interest as provided in section 501.616. A member
who fails to make demand within the twenty-day period is conclusively presumed to have
consented to the merger or consolidation and is bound by its terms.
2. In the event that a dissenting member does business with the surviving or new
cooperative before payment has been made for that person’s membership, the dissenting
member is deemed to have consented to the merger or consolidation and to have waived all
further rights as a dissenting member.