Title 16 Chapter 16 Section 1301

Corporations
Uniform Limited Cooperative Association Act
Section 1301
Derivative action.

            

16-16-1301.   Derivative action.

            A member may maintain a derivative action to enforce a right of a limited cooperative association if:

            (1) the member demands that the association bring an action to enforce the right; and

            (2) any of the following occur:

            (a) the association does not, not later than 90 days after the member makes the demand, agree to bring the action;

            (b) the association notifies the member that it has rejected the demand;

            (c) irreparable harm to the association would result by waiting 90 days after the member makes the demand; or

            (d) the association agrees to bring an action demanded and fails to bring the action within a reasonable time.


Enacted by Chapter 363, 2008 General Session