{"data":{"id":"us-ky/krs-272a.11-010","jurisdiction":"us-ky","citation":"KRS 272A.11-010","heading":"Member's dissociation.","body":"(1) A person has the power to dissociate as a member at any time, rightfully or\nwrongfully, by express will.\n(2) Unless the organic rules otherwise provide, a member's dissociation from a limited\ncooperative association is wrongful only if the dissociation:\n(a) Breaches an express provision of the organic rules; or\n(b) Occurs before the termination of the limited cooperative association and:\n1. The person is expelled as a member under subsection (4)(c) or (d) of this\nsection; or\n2. In the case of a person that is not an individual, trust other than a\nbusiness trust, or estate, the person is expelled or otherwise dissociated\nas a member because it dissolved or terminated in bad faith.\n(3) Unless the organic rules otherwise provide, a person that wrongfully dissociates as a\nmember is liable to the limited cooperative association for damages caused by the\ndissociation. The liability is in addition to any other debt, obligation, or liability of\nthe person to the association.\n(4) A member is dissociated from the limit ed cooperative association as a member\nwhen:\n(a) The association receives notice in a record of the member's express will to\ndissociate as a member, or if the member specifies in the notice an effective\ndate later than the date the association received notice, on that later date;\n(b) An event stated in the organic rules as causing the member's dissociation as a\nmember occurs;\n(c) The member is expelled as a member under the organic rules;\n(d) The member is expelled as a member by the board of directors because:\n1. It is unlawful to carry on the association's activities with the member as\na member;\n2. There has been a transfer of all the member's financial rights in the\nassociation, other than:\na. A creation or perfection of a security interest; or\nb. A charging order in effect under KRS 272A.6 -050 which has not\nbeen foreclosed;\n3. The member is a limited liability company, association, or partnership,\nwhich has been dissolved, and its business is being wound up;\n4. The member is a corporation or cooperative and:\na. The member filed articles of dissolution or the equivalent, or the\njurisdiction of formation revoked its charter or right to conduct\nbusiness;\nb. The association sends a notice to the member that it will be\nexpelled as a member for a reason d escribed in subdivision a. of\nthis subparagraph; and\nc. Not later than ninety (90) days after the notice was sent under\nsubdivision b. of this subparagraph, the member did not revoke its\narticles of dissolution or the equivalent, or the jurisdiction of\nformation did not reinstate the corporation's or cooperative's\ncharter or right to conduct business; or\n5. The member is an individual and is adjudged incompetent;\n(e) In the case of a member who is an individual, the individual dies;\n(f) In the case of a mem ber that is a trust or is acting as a member by virtue of\nbeing a trustee of a trust, all the trust's financial rights in the association are\ndistributed;\n(g) In the case of a member that is an estate, the estate's entire financial interest in\nthe association is distributed;\n(h) In the case of a member that is not an individual, partnership, limited liability\ncompany, cooperative, corporation, trust, or estate, the member is terminated;\nor\n(i) The association's participation in a merger if, under the plan o f merger, the\nmember ceases to be a member.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41061","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:22Z","sha256":"7fcf548e791622b28712e1080400a9d0a2d8f606291e8fed50fd5ec95170d80e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272a.10-080","next":"us-ky/krs-272a.11-020"},"notice":"GroundRules: Original legal text. Not legal advice."}