§ 23 — Action against directors and officers for misconduct

New York § 23

• Jurisdiction: New York
• Law REL: Rural Electric Cooperative
• Art. 2: Purpose; Organization and Management; Powers

Text

§ 23. Action against directors and officers for misconduct. (a) An\naction may be brought against one or more directors or officers of a\ncooperative to procure a judgment for the following relief:\n (1) To compel the defendant to account for his or her official conduct\nin the following cases:\n (i) The neglect of, or failure to perform, or other violation of his\nor her duties in the management and disposition of cooperative assets\ncommitted to his or her charge.\n (ii) The acquisition by him or herself, transfer to others, loss or\nwaste of cooperative assets due to any neglect of, or failure to\nperform, or other violation of his or her duties.\n (2) To set aside an unlawful conveyance, assignment or transfer of\ncooperative assets, where the transferee knew of its unlawfulness.\n (3) To enjoin a proposed unlawful conveyance, assignment or transfer\nof cooperative assets, where there are reasonable grounds for belief\nthat it will be made.\n (b) An action may be brought for the relief provided in this section\nand in subdivision (a) of section twenty-five of this article by the\nattorney general, by the cooperative or, in the right of the cooperative\nby any of the following:\n (1) A director or officer of the cooperative.\n (2) A receiver, trustee in bankruptcy, or judgment creditor thereof.\n (3) By one or more of the members of the cooperative.\n