§ 17-10-224 — Member violations; liability for cooperative debts

Wyoming § 17-10-224

• Jurisdiction: Wyoming
• Title 17: Corporations, Partnerships and Associations
• Ch. 10: COOPERATIVE MARKETING ASSOCIATIONS
• Art. 2: PROCESSING COOPERATIVE

Text

(a) A member who knowingly, intentionally, or repeatedly
violates a provision of the articles, bylaws, member control
agreement or marketing contract with the cooperative, may be
required by the board to surrender the financial rights of
membership interest of any class owned by the member.
(b) The cooperative shall refund to the member for the
surrendered financial rights of membership interest the lesser
of the book value or market value of the financial right of the
membership interest payable in not more than seven (7) years
from the date of surrender or the board may transfer all of any
patron member's financial rights to a class of financial rights
held by members who are not patron members, or to a certificate
of interest which carries liquidation rights on par with
membership interests and is redeemed within seven (7) years
after the transfer as provided in the certificate.
(c) Membership interests required to be surrendered may be
reissued or be retired and cancelled by the board.
(d) A member who knowingly, intentionally or repeatedly
violates a provision of the articles, bylaws, member control
agreement, or a marketing contract, may be required by the board
to surrender voting power in the cooperative.
(e) A member is not, merely on the account of that status,
personally liable for the acts, debts, liabilities, or
obligations of a cooperative. A member is liable for any unpaid
subscription for the membership interest, unpaid membership
fees, or a debt for which the member has separately contracted
with the cooperative.