Section 351.1186

Title XXIII CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS

Chapter 351

Effective - 28 Aug 2011   

  351.1186.  Court authority in dissolution proceedings — receiver may be appointed — distribution of assets. — 1.  In dissolution proceedings before a hearing can be completed, the court may:

  (1)  Issue injunctions;

  (2)  Appoint receivers with all powers and duties that the court directs;

  (3)  Take actions required to preserve the cooperative's assets wherever located; and

  (4)  Carry on the business of the cooperative.

  2.  After a hearing is completed, upon notice to parties to the proceedings and to other parties in interest designated by the court, the court may appoint a receiver to collect the cooperative's assets including amounts owing to the cooperative by subscribers on account of an unpaid portion of the consideration for the issuance of shares.  A receiver has authority, subject to the order of the court, to continue the business of the cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative either at public or private sale.

  3.  The assets of the cooperative or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied in the following order of priority:

  (1)  The costs and expense of the proceedings, including attorney fees and disbursements;

  (2)  Debts, taxes, and assessments due the United States, this state, and other states in that order;

  (3)  Claims duly proved and allowed to employees under the provisions of the workers' compensation act except that claims under this clause may not be allowed if the cooperative carried workers' compensation insurance, as provided by law, at the time the injury was sustained;

  (4)  Claims, including the value of all compensation paid in a medium other than money, proved and allowed to employees for services performed within three months preceding the appointment of the receiver, if any; and

  (5)  Other claims proved and allowed.

  4.  After payment of the expenses of receivership and claims of creditors are proved, the remaining assets, if any, may be distributed to the members or distributed under an approved liquidation plan.

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(L. 2011 S.B. 366)