16-16-402 - Notice and action on amendment of organic rules.
16-16-402. Notice and action on amendment of organic rules.
(1) Except as provided in Subsections 16-16-401(1) and 16-16-405(6), the organic rulesof a limited cooperative association may be amended only at a members meeting. Anamendment may be proposed by either:
(a) a majority of the board of directors, or a greater percentage if required by the organicrules; or
(b) one or more petitions signed by at least 10% of the patron members or at least 10% ofthe investor members.
(2) The board of directors shall call a members meeting to consider an amendmentproposed pursuant to Subsection (1). The meeting shall be held not later than 90 days followingthe proposal of the amendment by the board or receipt of a petition. The board shall mail orotherwise transmit or deliver in a record to each member:
(a) the proposed amendment, or a summary of the proposed amendment and a statementof the manner in which a copy of the amendment in a record may be reasonably obtained by amember;
(b) a recommendation that the members approve the amendment, or if the boarddetermines that because of conflict of interest or other special circumstances it should not make afavorable recommendation, the basis for that determination;
(c) a statement of any condition of the board's submission of the amendment to themembers; and
(d) notice of the meeting at which the proposed amendment will be considered, whichshall be given in the same manner as notice for a special meeting of members.
Amended by Chapter 378, 2010 General Session