§ 16-16-1205 — Voluntary dissolution by the board and members.

Utah § 16-16-1205

• Jurisdiction: Utah
• Title 16: Corporations
• Ch. 16-16: Uniform Limited Cooperative Association Act
• Part 16-16-12: Dissolution

Text

(1) Except as otherwise provided in Section 16-16-1204, for a limited cooperative association to voluntarily dissolve:

(1)(a) a resolution to dissolve shall be approved by a majority vote of the board of directors unless a greater percentage is required by the organic rules;
(1)(b) the board of directors shall call a members meeting to consider the resolution, to be held not later than 90 days after adoption of the resolution; and
(1)(c) the board of directors shall mail or otherwise transmit or deliver to each member in a record that complies with Section 16-16-508:
(1)(c)(i) the resolution required by Subsection (1)(a);
(1)(c)(ii) a recommendation that the members vote in favor of the resolution or, if the board determines that because of conflict of interest or other special circumstances it should not make a favorable recommendation, the basis of that determination; and
(1)(c)(iii) notice of the members meeting, which shall be given in the same manner as notice of a special meeting of members.
(2) Subject to Subsection (3), a resolution to dissolve shall be approved by:

(2)(a) at least two-thirds of the voting power of members present at a members meeting called under Subsection (1)(b); and
(2)(b) if the limited cooperative association has investor members, at least a majority of the votes cast by patron members, unless the organic rules require a greater percentage.
(3) The organic rules may require that the percentage of votes under Subsection (2)(a) is:

(3)(a) a different percentage that is not less than a majority of members voting at the meeting;
(3)(b) measured against the voting power of all members; or
(3)(c) a combination of Subsections (3)(a) and (b).

Legislative History

Amended by Chapter 378, 2010 General Session