An association may, at any regular or special meeting legally called, be directed to dissolve by a vote of two-thirds of the entire membership. By a vote of a majority of the members voting three of their number shall be designated as trustees, who shall, on behalf of the association and within a time fixed in their designation or within any extension thereof, liquidate its assets, pay its debts and expenses; return to the members the par value of their shares or of their membership certificates; return to subscribers the amount paid on their subscriptions, to patrons the amount of savings returns credited to their accounts toward purchase of shares or membership certificates; and distribute any surplus in either or both of the following ways, as the articles may provide:
A. among those patrons who have been members or subscribers at any time during the past six years, on the basis of their patronage during that period;
B. as a gift to any consumers' cooperative association or other nonprofit enterprise which may be designated in the articles.
History: Laws 1939, ch. 164, § 36; 1941 Comp., § 54-1436; 1953 Comp., § 51-15-36.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 18 Am. Jur. 2d Cooperative Associations § 22; 19 Am. Jur. 2d Corporations §§ 2740, 2741, 2746, 2748, 2750 to 2756, 2758 to 2762, 2764 to 2766, 2770 to 2778, 2780, 2781, 2785, 2834, 2880 to 2883.
19 C.J.S. Corporations §§ 811 to 882.
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