Texas § 251.401 VOLUNTARY WINDING UP AND TERMINATION.

Texas Statutes

§ 251.401 — VOLUNTARY WINDING UP AND TERMINATION.

Texas § 251.401

Code BOBusiness Organizations Code

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Tex. Business Organizations Code Code Ann. § 251.401 (2026).

Text

Sec. 251.401. VOLUNTARY WINDING UP AND TERMINATION.

(a)A cooperative association may wind up and terminate its affairs in accordance with Chapter 11 and Sections 22.301-22.303.

(b)If a cooperative association is directed to wind up and liquidate its affairs, three members of the cooperative association elected by a vote of at least a majority of the members voting shall be designated as trustees on behalf of the cooperative association to:

(1)pay debts;

(2)liquidate the cooperative association's assets within the time set in the trustees' designation or any extension of time; and

(3)distribute the cooperative association's assets in the manner provided by Section 251.403 .

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Sec. 251.401. VOLUNTARY WINDING UP AND TERMINATION. (a) A cooperative association may wind up and terminate its affairs in accordance with Chapter 11 and Sections 22.301-22.303.
(b) If a cooperative association is directed to wind up and liquidate its affairs, three members of the cooperative association elected by a vote of at least a majority of the members voting shall be designated as trustees on behalf of the cooperative association to:
(1) pay debts;
(2) liquidate the cooperative association's assets within the time set in the trustees' designation or any extension of time; and
(3) distribute the cooperative association's assets in the manner provided by Section 251.403 .