Minn. Stat. § 308B.935: Procedure In Involuntary Or Court-supervised Voluntary Dissolution

§ 308B.935 Procedure In Involuntary Or Court-supervised Voluntary Dissolution

Statute text

Extracted from the Revisor of Statutes; first captured here October 15, 2026. Formatting and whitespace are normalized. Extraction can contain errors; the linked official text controls.

Subdivision 1. Action before hearing.

In dissolution proceedings before a hearing can be completed the court may:

(1) issue injunctions;

(2) appoint receivers with all powers and duties that the court directs;

(3) take actions required to preserve the cooperative's assets wherever located; and

(4) carry on the business of the cooperative.

Subdivision 2. Action after hearing.

After a hearing is completed, upon notice to parties to the proceedings and to other parties in interest designated by the court, the court may appoint a receiver to collect the cooperative's assets, including amounts owing to the cooperative by subscribers on account of an unpaid portion of the consideration for the issuance of shares. In addition to the powers set forth in chapter 576, a receiver has authority, subject to the order of the court, to continue the business of the cooperative and to sell, lease, transfer, or otherwise dispose of the property and assets of the cooperative either at public or private sale.

Subdivision 3. Discharge of obligations.

The assets of the cooperative or the proceeds resulting from a sale, lease, transfer, or other disposition shall be applied in the order of priority set forth in section 576.51.

Subdivision 4. Remainder to members.

After payment of the expenses of receivership and claims of creditors are proved, the remaining assets, if any, may be distributed to the members or distributed under an approved liquidation plan.

History: 2003 c 105 art 1 s 78; 2012 c 143 art 3 s 11

Notes & interpretation Not part of the law

Verified against sources: October 15, 2026Last edited: October 16, 2026

In plain language#

Before the hearing is completed (subd. 1). The court may issue injunctions; appoint receivers with the powers and duties it directs; take actions needed to preserve the cooperative's assets wherever located; and carry on the cooperative's business.
After the hearing (subd. 2). On notice to the parties and other interested parties the court designates, the court may appoint a receiver to collect the assets, including amounts subscribers still owe on shares. Besides the powers in chapter 576, the receiver may, subject to the court's order, continue the business and sell, lease, transfer or otherwise dispose of property at public or private sale.
Priorities (subd. 3). Assets or sale proceeds are applied in the order of priority in section 576.51. (Chapter 576 is the receivership chapter and is outside the set of statutes ingested on this site; check the current text.)
Remainder (subd. 4). After receivership expenses and proved creditor claims are paid, remaining assets, if any, "may be distributed to the members or distributed under an approved liquidation plan."

How it works in practice#

The receiver's qualifications and bond are in § 308B.941; claim filing is in § 308B.951; the final order is in § 308B.961.
Subd. 4 says "may," so the statute leaves the choice of distribution method open; the court's order and any liquidation plan will control. The articles and bylaws are not mentioned in this subdivision.

Court remedies: § 308B.931
Receivers: § 308B.941
Order dissolving: § 308B.961

Sources

P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)

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