TITLE 17. EDUCATION

CHAPTER 15. EDUCATIONAL COOPERATIVE LAW

17:2819      Dissolution

  A. A cooperative which has not commenced business may dissolve voluntarily by delivering to the secretary of state articles of dissolution, executed and acknowledged on behalf of the cooperative by a majority of the incorporators. The articles of dissolution shall be submitted to the secretary of state for filing as provided in this Chapter. The articles of dissolution shall state;

  (1) The name of the cooperative;

  (2) The address of its principal office;

  (3) The date of its incorporation;

  (4) That the cooperative has not commenced business;

  (5) That the amount, if any, actually paid in account of membership fees, less any part thereof disbursed for necessary expenses, has been returned to those entitled thereto and that all servitudes have been released to the grantors;

  (6) That no debt of the cooperative remains unpaid; and

  (7) That a majority of the incorporators elect that the cooperative be dissolved.

  B. A cooperative which has commenced business may dissolve voluntarily and liquidate its affairs in the following manner:

  (1) The board of directors shall first recommend that the cooperative be dissolved voluntarily and thereafter the proposition that the cooperative be dissolved shall be submitted to the members of the cooperative at any annual or special meeting the notice of which shall set forth such proposition. The proposed voluntary dissolution shall be deemed to be approved upon the affirmative vote of not less than two-thirds of those members voting thereon at such meeting;

  (2) Upon such approval, a certificate of election to dissolve, hereinafter designated as the "certificate" shall be executed by authentic act on behalf of the cooperative by its president or vice-president and its corporate seal shall be affixed thereto and attested by its secretary. The certificate shall state:

     (a) The name of the cooperative;

     (b) The address of its principal office;

     (c) The names and addresses of its directors; and

     (d) The total number of members of the cooperative and the number of members who voted for and against the voluntary dissolution of the cooperative. The president or vice-president executing the certificate shall also make and annex thereto an affidavit stating that the provisions of this Subsection were duly complied with. Such certificate and affidavit shall be submitted to the secretary of state for filing as provided in this Chapter.

  (3) Upon the filing of the certificate and affidavit by the secretary of state, the cooperative shall cease to carry on its business except in so far as may be necessary for winding up thereof, but its corporate existence shall continue until articles of dissolution have been filed by the secretary of state;

  (4) After filing of the certificate and affidavit by the secretary of state the board of directors shall immediately cause notice of the liquidation proceedings to be mailed to each known creditor and claimant and to be published once a week for two successive weeks in a newspaper of general circulation in the parish in which the principal office of the cooperative is located;

  (5) The board of directors shall have full power to liquidate and settle the affairs of the cooperative and shall proceed to collect the debts owing to the cooperative, convey and dispose of its property and assets, pay, satisfy, and discharge its debts, obligations and liabilities, and do all other things required to liquidate its business and affairs, and after paying or adequately providing for the payment of all its debts, obligations and liabilities, shall distribute the remainder of its property and assets among its members;

  (6) When all debts, liabilities and obligations of the cooperative have been paid and discharged or adequate provision shall have been made therefor, and all of the remaining property and assets of the cooperative shall have been distributed pursuant to the provisions of this Section, the board of directors shall authorize the execution of articles of dissolution which shall thereupon be executed and acknowledged on behalf of the cooperative by its president or vice-president, and its corporate seal shall be affixed thereto and attested by its secretary. Such articles of dissolution shall recite in the caption that they are executed pursuant to this Chapter and shall state:

     (a) The name of the cooperative;

     (b) The address of the principal office of the cooperative;

     (c) That the cooperative has heretofore delivered to the secretary of state a certificate of election to dissolve and the date on which the certificate was filed by the secretary of state in the records of his office;

     (d) That all debts, obligations and liabilities of the cooperative have been paid and discharged or that adequate provisions have been made therefor;

     (e) That all the remaining property and assets of the cooperative have been distributed among the members in accordance with the provisions of this Section; and

     (f) That there are no actions or suits pending against the cooperative.

The president or vicepresident executing the articles of dissolution shall also make and annex thereto an affidavit stating that the provisions of this Subsection were duly complied with. Such articles of dissolution and affidavit accompanied by proof of publication required in this Subsection, shall be submitted to the secretary of state for filing as provided in this chapter.

Added by Acts 1958, No. 257, Sec. 19.