56-231.24 - Power to dispose of property. - Virginia Statutes

§ 56-231.24. Power to dispose of property.

No cooperative may sell, lease or dispose of all or substantially all of itsproperty (other than property which, in the judgment of the board, is neithernecessary nor useful in operating and maintaining the cooperative's systemand which in any one year shall not exceed fifty percent in value of thevalue of all the property of the cooperative, or merchandise), unlessauthorized to do so by the votes of at least a two-thirds majority of itsmembers; however, a cooperative (i) may mortgage, finance (including, withoutlimitation, pursuant to a sale and leaseback or lease and leasebacktransaction), or otherwise encumber its assets by a vote of at leasttwo-thirds of its board of directors; (ii) may sell or transfer its assets toanother cooperative upon the vote of a majority of its members at any regularor special meeting if the notice of such meeting contains a copy of the termsof the proposed sale or transfer; (iii) may sell or transfer distributionsystem facilities to a city or town at any time following the annexation ofadditional territory pursuant to § 56-265.4:2 by a vote of at leasttwo-thirds of its board of directors; or (iv) may sell, lease or dispose ofits property to an affiliate pursuant to a plan approved by the Commission inaccordance with subsection B of § 56-590 by a vote of at least two-thirds ofthe members of the Board.

(1999, c. 874; 2000, cc. 944, 999.)