2016 Utah Code
Title 16 - Corporations
Chapter 16 - Uniform Limited Cooperative Association Act
Part 15 - Disposition of Assets
Section 1504 - Disposition of assets.

16-16-1504. Disposition of assets.

• (1) Subject to Subsection (2), a disposition of assets under Section 16-16-1502 shall be approved by:
  • (a) at least two-thirds of the voting power of members present at a members meeting called under Subsection 16-16-1503(2); and
  • (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 vote by patron members.

• (2) The organic rules may require that the percentage of votes under Subsection (1)(a) is:
  • (a) a different percentage that is not less than a majority of members voting at the meeting;
  • (b) measured against the voting power of all members; or
  • (c) a combination of Subsections (2)(a) and (b).

• (3) Subject to any contractual obligations, after a disposition of assets is approved and at any time before the consummation of the disposition, a limited cooperative association may approve an amendment to the contract for disposition or the resolution authorizing the disposition or approve abandonment of the disposition:
  • (a) as provided in the contract or the resolution; and
  • (b) except as prohibited by the resolution, with the same affirmative vote of the board of directors and of the members as was required to approve the disposition.

• (4) The voting requirements for districts, classes, or voting groups under Section 16-16-404 apply to approval of a disposition of assets under this part.

Amended by Chapter 378, 2010 General Session