16-16-1301 - Derivative action.
16-16-1301. Derivative action.
A member may maintain a derivative action to enforce a right of a limited cooperativeassociation if:
(1) the member demands that the association bring an action to enforce the right; and
(2) any of the following occur:
(a) the association does not, not later than 90 days after the member makes the demand,agree to bring the action;
(b) the association notifies the member that it has rejected the demand;
(c) irreparable harm to the association would result by waiting 90 days after the membermakes the demand; or
(d) the association agrees to bring an action demanded and fails to bring the action withina reasonable time.
Enacted by Chapter 363, 2008 General Session