Utah Code § 16-16-501 Members.
16-16-501. Members.
To begin business, a limited cooperative association shall have at least two patron members unless the sole member is a cooperative.
Amended by Chapter 378, 2010 General Session
Members
Utah Code tit. 16, ch. 16-16, pt. 16-16-P5
in effectUtah Code § 16-16-502 Becoming a member.
16-16-502. Becoming a member.
A person becomes a member:
(1) as provided in the organic rules;
(2) as the result of a merger or conversion under Chapter 1a, Part 7, Merger, or Chapter 1a, Part 9, Conversion; or
(3) with the consent of all the members.
Amended by Chapter 92, 2026 General Session
Utah Code § 16-16-503 No power as member to bind association.
16-16-503. No power as member to bind association.
A member, solely by reason of being a member, may not act for or bind the limited cooperative association.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-504 No liability as member for association's obligations.
16-16-504. No liability as member for association's obligations.
Unless the articles of organization otherwise provide, a debt, obligation, or other liability of a limited cooperative association is solely that of the association and is not the debt, obligation, or liability of a member solely by reason of being a member.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-505 Right of member and former member to information.
16-16-505. Right of member and former member to information.
(1) Not later than 10 business days after receipt of a demand made in a record, a limited cooperative association shall permit a member to obtain, inspect, and copy in the association's principal office required information listed in Subsections 16-16-114(1)(a) through (h) during regular business hours. A member need not have any particular purpose for seeking the information. The association is not required to provide the same information listed in Subsections 16-16-114(1)(b) through (h) to the same member more than once during a six-month period.
(2) On demand made in a record received by the limited cooperative association, a member may obtain, inspect, and copy in the association's principal office required information listed in Subsections 16-16-114(1)(i), (j), (l), (m), (p), and (r) during regular business hours, if:
(a) the member seeks the information in good faith and for a proper purpose reasonably related to the member's interest;
(b) the demand includes a description with reasonable particularity of the information sought and the purpose for seeking the information;
(c) the information sought is directly connected to the member's purpose; and
(d) the demand is reasonable.
(3) Not later than 10 business days after receipt of a demand pursuant to Subsection (2), a limited cooperative association shall provide, in a record, the following information to the member that made the demand:
(a) if the association agrees to provide the demanded information:
(i) what information the association will provide in response to the demand; and
(ii) a reasonable time and place at which the association will provide the information; or
(b) if the association declines to provide some or all of the demanded information, the association's reasons for declining.
(4) A person dissociated as a member may obtain, inspect, and copy information available to a member under Subsection (1) or (2) by delivering a demand in a record to the limited cooperative association in the same manner and subject to the same conditions applicable to a member under Subsection (2) if:
(a) the information pertains to the period during which the person was a member in the association; and
(b) the person seeks the information in good faith.
(5) A limited cooperative association shall respond to a demand made pursuant to Subsection (4) in the manner provided in Subsection (3).
(6) Not later than 10 business days after receipt by a limited cooperative association of a demand made by a member in a record, but not more often than once in a six-month period, the association shall deliver to the member a record stating the information with respect to the member required by Subsection 16-16-114(1)(q).
(7) A limited cooperative association may impose reasonable restrictions, including nondisclosure restrictions, on the use of information obtained under this section. In a dispute concerning the reasonableness of a restriction under this Subsection (7), the association has the burden of proving reasonableness.
(8) A limited cooperative association may charge a person that makes a demand under this section reasonable costs of copying, limited to the costs of labor and material.
(9) A person that may obtain information under this section may obtain the information through an attorney or other agent. A restriction imposed on the person under Subsection (7) or by the organic rules applies to the attorney or other agent.
(10) The rights stated in this section do not extend to a person as transferee.
(11) The organic rules may require a limited cooperative association to provide more information than required by this section and may establish conditions and procedures for providing the information.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-506 Annual meeting of members.
16-16-506. Annual meeting of members.
(1) Members shall meet annually at a time provided in the organic rules or set by the board of directors not inconsistent with the organic rules.
(2) An annual members meeting may be held inside or outside this state at the place stated in the organic rules or selected by the board of directors not inconsistent with the organic rules.
(3) Unless the organic rules otherwise provide, members may attend or conduct an annual members meeting through any means of communication if all members attending the meeting can communicate with each other during the meeting.
(4) The board of directors shall report, or cause to be reported, at the association's annual members meeting the association's business and financial condition as of the close of the most recent fiscal year.
(5) Unless the organic rules otherwise provide, the board of directors shall designate the presiding officer of the association's annual members meeting.
(6) Failure to hold an annual members meeting does not affect the validity of any action by the limited cooperative association.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-507 Special meeting of members.
16-16-507. Special meeting of members.
(1) A special meeting of members may be called only:
(a) as provided in the organic rules;
(b) by a majority vote of the board of directors on a proposal stating the purpose of the meeting;
(c) by demand in a record signed by members holding at least 20% of the voting power of the persons in any district or class entitled to vote on the matter that is the purpose of the meeting stated in the demand; or
(d) by demand in a record signed by members holding at least 10% of the total voting power of all the persons entitled to vote on the matter that is the purpose of the meeting stated in the demand.
(2) A demand under Subsection (1)(c) or (d) shall be submitted to the officer of the limited cooperative association charged with keeping its records.
(3) Any voting member may withdraw its demand under Subsection (1)(c) or (d) before receipt by the limited cooperative association of demands sufficient to require a special meeting of members.
(4) A special meeting of members may be held inside or outside this state at the place stated in the organic rules or selected by the board of directors not inconsistent with the organic rules.
(5) Unless the organic rules otherwise provide, members may attend or conduct a special meeting of members through the use of any means of communication if all members attending the meeting can communicate with each other during the meeting.
(6) Only business within the purpose or purposes stated in the notice of a special meeting of members may be conducted at the meeting.
(7) Unless the organic rules otherwise provide, the presiding officer of a special meeting of members shall be designated by the board of directors.
Amended by Chapter 378, 2010 General Session
Utah Code § 16-16-508 Notice of members meeting.
16-16-508. Notice of members meeting.
(1) A limited cooperative association shall notify each member of the time, date, and place of a members meeting at least 15 and not more than 60 days before the meeting.
(2) Unless the articles of organization otherwise provide, notice of an annual members meeting need not include any purpose of the meeting.
(3) Notice of a special meeting of members shall include each purpose of the meeting as contained in the demand under Subsection 16-16-507(1)(c) or (d) or as voted upon by the board of directors under Subsection 16-16-507(1)(b).
(4) Notice of a members meeting shall be given in a record unless oral notice is reasonable under the circumstances.
Amended by Chapter 378, 2010 General Session
Utah Code § 16-16-509 Waiver of members meeting notice.
16-16-509. Waiver of members meeting notice.
(1) A member may waive notice of a members meeting before, during, or after the meeting.
(2) A member's participation in a members meeting is a waiver of notice of that meeting unless the member objects to the meeting at the beginning of the meeting or promptly upon the member's arrival at the meeting and does not thereafter vote for or assent to action taken at the meeting.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-510 Quorum of members.
16-16-510. Quorum of members.
Unless the organic rules otherwise require a greater number of members or percentage of the voting power, the voting member or members present at a members meeting constitute a quorum.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-511 Voting by patron members.
16-16-511. Voting by patron members.
Except as provided by Subsection 16-16-512(1), each patron member has one vote. The organic rules may allocate voting power among patron members as provided in Subsection 16-16-512(1).
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-512 Determination of voting power of patron member.
16-16-512. Determination of voting power of patron member.
(1) The organic rules may allocate voting power among patron members on the basis of one or a combination of the following:
(a) one member, one vote;
(b) use or patronage;
(c) equity; or
(d) if a patron member is a cooperative, the number of its patron members.
(2) The organic rules may provide for the allocation of patron member voting power by districts or class, or any combination thereof.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-513 Voting by investor members.
16-16-513. Voting by investor members.
If the organic rules provide for investor members, each investor member has one vote, unless the organic rules otherwise provide. The organic rules may provide for the allocation of investor member voting power by class, classes, or any combination of classes.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-514 Voting requirements for members.
16-16-514. Voting requirements for members.
(1) If a limited cooperative association has both patron and investor members, the following rules apply:
(a) the total voting power of all patron members may not be less than a majority of the entire voting power entitled to vote; and
(b) action on any matter is approved only upon the affirmative vote of at least a majority of:
(i) all members voting at the meeting unless more than a majority is required by this chapter or the organic rules; and
(ii) votes cast by patron members unless the organic rules require a larger affirmative vote by patron members.
(2) The organic rules may provide for the percentage of the affirmative votes that must be cast by investor members to approve the matter.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-515 Manner of voting.
16-16-515. Manner of voting.
(1) Unless the organic rules otherwise provide, voting by a proxy at a members meeting is prohibited. This Subsection (1) does not prohibit delegate voting based on district or class.
(2) If voting by a proxy is permitted, a patron member may appoint only another patron member as a proxy and, if investor members are permitted, an investor member may appoint only another investor member as a proxy.
(3) The organic rules may provide for the manner of and provisions governing the appointment of a proxy.
(4) The organic rules may provide for voting on any question by ballot delivered by mail or voting by other means on questions that are subject to vote by members.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-516 Action without a meeting.
16-16-516. Action without a meeting.
(1) Unless the organic rules require that action be taken only at a members meeting, any action that may be taken by the members may be taken without a meeting if each member entitled to vote on the action consents in a record to the action.
(2) Consent under Subsection (1) may be withdrawn by a member in a record at any time before the limited cooperative association receives a consent from each member entitled to vote.
(3) Consent to any action may specify the effective date or time of the action.
Enacted by Chapter 363, 2008 General Session
Utah Code § 16-16-517 Districts and delegates -- Classes of members.
16-16-517. Districts and delegates -- Classes of members.
(1) The organic rules may provide for the formation of geographic districts of patron members and:
(a) for the conduct of patron member meetings by districts and the election of directors at the meetings; or
(b) that districts may elect district delegates to represent and vote for the district at members meetings.
(2) A delegate elected under Subsection (1)(b) has one vote unless voting power is otherwise allocated by the organic rules.
(3) The organic rules may provide for the establishment of classes of members, for the preferences, rights, and limitations of the classes, and:
(a) for the conduct of members meetings by classes and the election of directors at the meetings; or
(b) that classes may elect class delegates to represent and vote for the class in members meetings.
(4) A delegate elected under Subsection (3)(b) has one vote unless voting power is otherwise allocated by the organic rules.
Enacted by Chapter 363, 2008 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title16/Chapter16/16-16-P5.html?v=C16-16-P5_1800010118000101Fetched: 10/26/2026