Montana Code 35-18-302. Nonliability of members, trustees, and officers for debts of cooperative
35-18-302. Nonliability of members, trustees, and officers for debts of cooperative. (1) The private property of the members of a cooperative is exempt from execution for the debts of the cooperative, and a member is not liable or responsible for any debts or obligations of the cooperative.
Terms Used In Montana Code 35-18-302
- Cooperative: means a corporation organized under this chapter or a corporation that becomes subject to the provisions of this chapter. See Montana Code 35-18-102
- Member: means each incorporator of a cooperative and each person admitted to and retaining membership in a cooperative as provided by the articles of incorporation or bylaws of the cooperative, including persons admitted to joint membership. See Montana Code 35-18-102
- Property: means real and personal property. See Montana Code 1-1-205
- Trustee: A person or institution holding and administering property in trust.
(2)A trustee or officer of a cooperative or acting for a cooperative is not personally liable to the cooperative or its members for any actions taken or a failure to take action as a trustee or officer unless:
(a)the trustee or officer fails to perform the trustee’s or officer’s responsibilities, including those provided in 35-18-325 and 35-18-326; and
(b)the failure to perform constitutes willful misconduct or recklessness.