KRS 272A.4-020: Notice and action on amendment of organic rules.

(1) Except as provided in KRS 272A.4 -010(1) and 272A.4-050(6), the organic rules of

a limited cooperative association may be amended only at a members meeting. An

amendment may be proposed by either:

(a) A majority of the board of directors, or a greater perce ntage if required by the

organic rules; or

(b) One (1) or more petitions signed by at least ten percent (10%) of the patron

members or at least ten percent (10%) of the investor members.

(2) The board of directors shall call a members meeting to consider a n amendment

proposed pursuant to subsection (1) of this section. The meeting shall be held not

later than ninety (90) days following the proposal of the amendment by the board or

receipt of a petition. The board shall mail or otherwise transmit or deliver in a

record to each member:

(a) The proposed amendment, or a summary of the proposed amendment and a

statement of the manner in which a copy of the amendment in a record may be

reasonably obtained by a member;

(b) A recommendation that the members approve the amendment, or if the board

determines that because of conflict of interest or other special circumstances it

should not make a favorable recommendation, the basis for that

determination;

(c) A statement of any condition of the board's submission of the amendment to

the members; and

(d) Notice of the meeting at which the proposed amendment will be considered,

which shall be given in the same manner as notice for a special meeting of

members.