A. A domestic electric cooperative nonprofit membership corporation may be a party to or otherwise undertake a merger, an interest exchange, a conversion, a domestication or a division by complying with chapter 34 of this title and Title 29, Chapter 6. A plan must be approved by two-thirds of the members.

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Terms Used In Arizona Laws 10-2073

  • Cooperative: means a corporation that is organized under this article or that becomes subject to this article in the manner provided in this article. See Arizona Laws 10-2051
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Membership: refers to the rights and obligations a member or members have pursuant to a corporation's articles of incorporation and bylaws and chapters 24 through 40 of this title. See Arizona Laws 10-3140

B. If a domestic electric cooperative nonprofit membership corporation is to be created in a merger, a conversion, a domestication or a division, both of the following apply:

1. The initial members of the corporation must consist of five or more natural persons or two or more cooperatives in accordance with section 10-2053.

2. The name of the corporation must comply with section 10-2054.

C. For the purposes of this section:

1. "Conversion" means a transaction authorized by Title 29, Chapter 6, Article 4.

2. "Division" means a transaction authorized by Title 29, Chapter 6, Article 6.

3. "Domestication" means a transaction authorized by Title 29, Chapter 6, Article 5.

4. "Interest exchange" means a transaction authorized by Title 29, Chapter 6, Article 3.

5. "Merger" means a transaction authorized by Title 29, Chapter 6, Article 2.

6. "Plan" means a plan of merger, interest exchange, conversion, domestication or division.