N.Y. Rural Electric Cooperative Law 23 – Action against directors and officers for misconduct
§ 23. Action against directors and officers for misconduct. (a) An action may be brought against one or more directors or officers of a cooperative to procure a judgment for the following relief:
Terms Used In N.Y. Rural Electric Cooperative Law 23
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Trustee: A person or institution holding and administering property in trust.
(1) To compel the defendant to account for his or her official conduct in the following cases:
(i) The neglect of, or failure to perform, or other violation of his or her duties in the management and disposition of cooperative assets committed to his or her charge.
(ii) The acquisition by him or herself, transfer to others, loss or waste of cooperative assets due to any neglect of, or failure to perform, or other violation of his or her duties.
(2) To set aside an unlawful conveyance, assignment or transfer of cooperative assets, where the transferee knew of its unlawfulness.
(3) To enjoin a proposed unlawful conveyance, assignment or transfer of cooperative assets, where there are reasonable grounds for belief that it will be made.
(b) An action may be brought for the relief provided in this section and in subdivision (a) of section twenty-five of this article by the attorney general, by the cooperative or, in the right of the cooperative by any of the following:
(1) A director or officer of the cooperative.
(2) A receiver, trustee in bankruptcy, or judgment creditor thereof.
(3) By one or more of the members of the cooperative.