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185.38 Disposition of assets; right to secure debts.

185.38

185.38 Disposition of assets; right to secure debts.

185.38(1)

(1) Except as authorized by the members, the board may not dispose of all or substantially all of a cooperative's fixed assets. At any meeting the members may authorize the disposition of all or substantially all of a cooperative's fixed assets if:

185.38(1)(a)

(a) Notice that such disposition will be considered at such meeting has been given to all persons entitled to vote thereon; and

185.38(1)(b)

(b) Such disposition has been approved by two-thirds of those entitled to vote thereon voting at the meeting.

185.38(2)

(2) Unless the bylaws provide otherwise, the board may secure payment of a cooperative's debts by mortgaging the cooperative's rights, privileges, authority and franchises, revenues and other property.

185.38 - ANNOT.

History: 1985 a. 30 s. 42.