56-496 - Disposition of property. - Virginia Statutes

§ 56-496. Disposition of property.

No cooperative may sell, lease or dispose of any of its property other thanproperty which, in the judgment of the board, is neither necessary nor usefulin operating or maintaining the cooperative's system and which in any oneyear shall not exceed ten per centum in value of the value of all theproperty of the cooperative, unless authorized so to do by the votes of atleast a two-thirds majority of its members; provided, however, that acooperative: (i) may mortgage or otherwise encumber its assets by a vote ofat least two-thirds of its board of directors; or (ii) may sell or transferits assets to another cooperative upon the vote of a majority of its membersat any regular or special meeting if the notice of such meeting contains acopy of the terms of the proposed sale or transfer.

(1950, p. 593; 1956, c. 434; 1979, c. 103.)