HLS 10RS-2683 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 1351
BY REPRESENTATIVE NOWLIN
CORPORATIONS: Provides relative to the dissolution of electric cooperatives
AN ACT1
To amend and reenact R.S. 12:418(B)(1), relative to certain corporations; to provide with2
respect to electric cooperatives; to provide relative to dissolution; to provide3
procedures for shareholder voting; to provide for mail or proxy voting; to provide for4
prospective application; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 12:418(B)(1) is hereby amended and reenacted to read as follows:7
ยง418. Dissolution 8
* * *9
B. A cooperative which has commenced business may dissolve voluntarily10
and liquidate its affairs in the following manner: 11
(1) The board of directors shall first recommend that the cooperative be12
dissolved voluntarily and thereafter the proposition that the cooperative be dissolved13
shall be submitted to the members of the cooperative at any annual or special14
meeting the notice of which shall set forth such proposition. The proposed voluntary15
dissolution shall be deemed to be approved upon the affirmative vote of not less than16
two-thirds a majority of those members voting thereon at such meeting; all of the17
members of the cooperative. Notwithstanding any provision of the articles of18
incorporation or bylaws of a cooperative, and notwithstanding any other provision19
of law, including the provisions of this Part, voting by mail and proxy is expressly20 HLS 10RS-2683 ORIGINAL
HB NO. 1351
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
authorized for the purposes of this Section. Those members voting by mail or proxy1
shall be considered present in person.2
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Section 2. The provisions of this Act shall be applied prospectively only and shall4
not affect any transaction which cooperative members have voted to approve or disapprove5
prior to the effective date of this Act.6
Section 3. The provisions of this Act shall become effective on January 1, 2011.7
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Nowlin HB No. 1351
Abstract: Requires an affirmative vote of not less than a majority of all of the members of
a cooperative in order to dissolve an electrical cooperative, and authorizes voting by
mail and proxy.
Present law provides that a voluntary dissolution of an electrical cooperative shall be deemed
to be approved upon the affirmative vote of not less than 2/3 of those members voting at the
annual or special meeting.
Proposed law requires an affirmative vote of not less than a majority of all of the members
of a cooperative in order to dissolve an electrical cooperative, and authorizes voting by mail
and proxy.
Effective Jan. 1, 2011.
(Amends R.S. 12:418(B)(1))