Vermont § 1603 - Action on plan of conversion by converting mutual benefit enterprise

§ 1603. Action on plan of conversion by converting mutual benefit enterprise

• (a) For a mutual benefit enterprise to convert to another entity, a plan of conversion
  shall be approved by a majority of the board of directors, or a greater percentage
  if required by the organic rules, and the board of directors shall call a members’
  meeting to consider the plan of conversion, hold the meeting not later than 90 days
  after approval of the plan by the board, and mail or otherwise transmit or deliver
  in a record to each member: (1) the plan, or a summary of the plan and a statement of the manner in which a copy of
  the plan in a record may be reasonably obtained by a member; (2) a recommendation that the members approve the plan of conversion, or if the board
  determines that because of a conflict of interest or other circumstances it should
  not make a favorable recommendation, the basis for that determination; (3) a statement of any condition of the board’s submission of the plan of conversion to
  the members; and (4) notice of the meeting at which the plan of conversion will be considered, which shall
  be given in the same manner as notice of a special meeting of members. (b) Subject to subsections (c) and (d) of this section, a plan of conversion shall be
  approved by: (1) at least two-thirds of the voting power of members present at a members’ meeting called
  under subsection (a) of this section; and (2) if the mutual benefit enterprise has investor members, at least a majority of the
  votes cast by patron members, unless the organic rules require a greater percentage
  vote by patron members. (c) The organic rules may require that the percentage of votes under subdivision (b)(1)
  of this section is: (1) a different percentage that is not less than a majority of members voting at the meeting; (2) measured against the voting power of all members; or (3) a combination of subdivisions (1) and (2) of this subsection. (d) The vote required to approve a plan of conversion may not be less than the vote required
  for the members of the mutual benefit enterprise to amend the articles of organization. (e) Consent in a record to a plan of conversion by a member shall be delivered to the
  mutual benefit enterprise before delivery of articles of conversion for filing if
  as a result of the conversion, the member will have: (1) personal liability for an obligation of the enterprise; or (2) an obligation or liability for an additional contribution. (f) Subject to subsection (e) of this section and any contractual rights, after a conversion
  is approved and at any time before the effective date of the conversion, a converting
  mutual benefit enterprise may amend a plan of conversion or abandon the planned conversion: (1) as provided in the plan; and (2) except as prohibited by the plan, by the same affirmative vote of the board of directors
  and of the members as was required to approve the plan. (g) The voting requirements for districts, classes, or voting groups under section 404 of this title apply to approval of a conversion under this article. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)