CODE OF VIRGINIA

POWER TO DISPOSE OF PROPERTY (§ 56-231.24)

No cooperative may sell, lease or dispose of all or substantially all of its
property (other than property which, in the judgment of the board, is neither
necessary nor useful in operating and maintaining the cooperative’s system
and which in any one year shall not exceed fifty percent in value of the value
of all the property of the cooperative, or merchandise), unless authorized to do
so by the votes of at least a two-thirds majority of its members; however, a
cooperative (i) may mortgage, finance (including, without limitation, pursuant
to a sale and leaseback or lease and leaseback transaction), or otherwise
encumber its assets by a vote of at least two-thirds of its board of directors;
(ii) may sell or transfer its assets to another cooperative upon the vote of a
majority of its members at any regular or special meeting if the notice of such
meeting contains a copy of the terms of the proposed sale or transfer; (iii) may
sell or transfer distribution system facilities to a city or town at any time
following the annexation of additional territory pursuant to § 56-265.4:2 by a
vote of at least two-thirds of its board of directors; or (iv) may sell, lease
or dispose of its property to an affiliate pursuant to a plan approved by the
Commission in accordance with subsection B of § 56-590 by a vote of at least
two-thirds of the members of the Board.

HISTORY: 1999, c. 874; 2000, cc. 944, 999.