43-38-602 - Agency of members in the cooperative. - Tennessee Statutes

43-38-602. Agency of members in the cooperative.

(a)  Unless the articles provide otherwise, no member is an agent of the cooperative for the purpose of its business, other than a member designated by the board of directors, including the execution in the cooperative name of any instrument, for apparently carrying on in the usual way the business of the cooperative of which the person is a member, and a member does not bind the cooperative, unless the member so acting has in fact the authority to act for the cooperative in the particular matter.

(b)  Unless the articles provide otherwise, the following persons are agents of the cooperative and may legally bind the cooperative, subject to the limitation on these persons contained in this chapter:

     (1)  The president;

     (2)  A person designated in the articles or the bylaws as being so authorized; or

     (3)  A person designated in writing by action of the directors as being so authorized.

[Acts 2004, ch. 534, § 24.]