Source: https://legislature.vermont.gov/statutes/fullchapter/11C/015
Timestamp: 2020-02-20 01:32:32
Document Index: 405242449

Matched Legal Cases: ['§ 1501', '§ 1', '§ 1502', '§ 1', '§ 1504', '§ 1']

Title 11C: Mututal Benefit Enterprises
Chapter 015: DISPOSITION OF ASSETS
§ 1501. Disposition of assets not requiring member approval
Unless the articles of organization otherwise provide, member approval under section 1502 of this title is not required for a mutual benefit enterprise to:
(1) sell, lease, exchange, license, or otherwise dispose of all or any part of the assets of the enterprise in the usual and regular course of business; or
(2) mortgage, pledge, dedicate to the repayment of indebtedness, or encumber in any way all or any part of the assets of the enterprise whether or not in the usual and regular course of business. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)
§ 1502. Member approval of other disposition of assets
A sale, lease, exchange, license, or other disposition of assets of a mutual benefit enterprise, other than a disposition described in section 1501 of this title, requires approval of the enterprise's members under sections 1503 and 1504 of this title if the disposition leaves the enterprise without significant continuing business activity. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)
§ 1504. Disposition of assets
(a) Subject to subsection (b) of this section, a disposition of assets under section 1502 of this title shall be approved by:
(1) at least two-thirds of the voting power of members present at a members' meeting called under subdivision 1503(2) of this title; and
(2) if the mutual benefit enterprise 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.
(b) The organic rules may require that the percentage of votes under subdivision (a)(1) of this title is:
(3) a combination of subdivisions (1) and (2) of this subsection.
(c) Subject to any contractual obligations, after a disposition of assets is approved and at any time before the consummation of the disposition, a mutual benefit enterprise may approve an amendment to the contract for disposition or the resolution authorizing the disposition or approve abandonment of the disposition:
(d) The voting requirements for districts, classes, or voting groups under section 404 of this title apply to approval of a disposition of assets under this article. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)