(a) The certificate of formation or bylaws of a cooperative association may provide for a referendum on any action undertaken by the cooperative association‘s board of directors if the referendum is:
(1) requested by petition of 10 percent or more of all of the members of the cooperative association; or
(2) requested and approved by the vote of at least a majority of the directors of the cooperative association.
(b) The proposition to be voted on in a referendum authorized under Subsection (a) must be submitted to the members of the cooperative association for consideration within the time specified in the document authorizing the referendum.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Texas Business Organizations Code 251.104


(c) A right of a third party that has vested between the time of the action and the time of the referendum is not impaired by the referendum results.