185.03(4)
(4) Make contracts, incur liabilities and borrow money; issue certificates representing indebtedness, or representing equity interests in its assets; acquire property; dispose of, mortgage, pledge, lease or otherwise use in any manner any of its property, or any interest therein, wherever situated.
185.03(5)
(5) Invest its funds, lend money for its purposes, and hold any property as security for repayment.
185.03(6)
(6) Conduct its business and affairs and have offices and exercise its powers in the United States or in any foreign country.
185.03(7)
(7) Elect officers and appoint agents, define their duties and fix their compensation.
185.03(8)
(8) Make and alter bylaws, consistent with its articles and the laws of this state, for the administration and regulation of its affairs.
185.03(9)
(9) Make donations for charitable, scientific, educational or religious purposes.
185.03(10)
(10) Effect the forfeiture to the cooperative of unclaimed funds, including all forms of distributions or credits under
s. 185.45 (2) (b) and
(c),
(3) (a) and
(b) and
(4) (b) and unclaimed stock, membership fees and deposits, if all of the following conditions are met:
185.03(10)(a)
(a) No earlier than 3 years and no later than 5 years after the funds are first made available to their owners, the board declares the funds forfeited to the cooperative unless claimed by the date specified in
par. (b).
185.03(10)(b)
(b) After the declaration under
par. (a), the cooperative gives notice that states that the funds shall be forfeited if not claimed by a specified date.
185.03(10)(c)
(c) The date specified in the notice under
par. (b) is a business day at least 60 days after the date of mailing of the notice.
185.03(10)(d)
(d) The notice under
par. (b) is mailed to the last-known address of each owner and is published as a class 1 notice under
ch. 985 on or before the date of mailing in a newspaper published in the municipality containing the service area of the cooperative.
185.03(10)(e)
(e) The cooperative dedicates any funds remaining unclaimed after the date specified in
par. (b) to educational purposes, limited to providing scholarships or loans to students, or to charitable purposes, as the board determines, within one year after the date the funds are declared forfeited under
par. (a). In this paragraph, educational purposes does not include political purposes as defined in
s. 11.01 (16).
185.03(11)
(11) Cease its activities and surrender its franchise.
185.03(12)
(12) Exercise all powers necessary or convenient to effect its purposes.
185.03 History
History: 1985 a. 30,
332.
185.031
185.031
Refunds after forfeiture. Subsequent to a forfeiture under
s. 185.03 (10), the owner of the forfeited funds may submit a claim to the board. If the board determines that the person owned the funds at the time of the forfeiture, it shall refund the funds to the person.
185.031 History
History: 1985 a. 332.
185.033
185.033
Restriction on changes to articles. 185.033(1)
(1) If the articles contain a prohibition on changes to the provision establishing the basis of distribution as provided in
s. 185.05 (1) (j), no changes may be made to the provision including by amendment under
s. 185.51 or
185.52, approval of a plan of division under
s. 185.63, adoption of restated articles under
s. 185.54, approval of a plan of merger or consolidation under
s. 185.61 and conversion to a nonstock corporation under
s. 181.1150.
185.033(2)
(2) If, upon dissolution of a cooperative with articles containing a prohibition on changes in the basis of distribution, the distributions required are wholly or partly impossible of execution, the whole or part of the net proceeds shall be distributed as provided in
s. 185.71 (3).
185.033 History
History: 1985 a. 30;
1997 a. 79.
185.034
185.034
Definitions applicable to indemnification and insurance provisions. In
ss. 185.034 to
185.042:
185.034(1)
(1) "Cooperative" means a domestic cooperative and any domestic or foreign predecessor of a domestic cooperative where the predecessor cooperative's existence ceased upon the consummation of a merger or other transaction.
185.034(2)
(2) "Director or officer" means any of the following:
185.034(2)(a)
(a) A natural person who is or was a director or officer of a cooperative.
185.034(2)(b)
(b) A natural person who, while a director or officer of a cooperative, is or was serving at the cooperative's request as a director, officer, partner, trustee, member of any governing or decision-making committee, manager, employee or agent of an association, corporation, limited liability company, partnership, joint venture, trust or other enterprise.
185.034(2)(c)
(c) A natural person who, while a director or officer of a cooperative, is or was serving an employee benefit plan because his or her duties to the cooperative also imposed duties on, or otherwise involved services by, the person to the plan or to participants in or beneficiaries of the plan.
185.034(2)(d)
(d) A natural person who is or was the chief executive, managerial employee of a cooperative, regardless of the person's title.
185.034(2)(e)
(e) Unless the context requires otherwise, the estate or personal representative of a director or officer.
185.034(3)
(3) "Expenses" include fees, costs, charges, disbursements, attorney fees and any other expenses incurred in connection with a proceeding.
185.034(4)
(4) "Liability" includes the obligation to pay a judgment, settlement, penalty, assessment, forfeiture or fine, including any excise tax assessed with respect to an employee benefit plan, and reasonable expenses.
185.034(5)
(5) "Party" means a natural person who was or is, or who is threatened to be made, a named defendant or respondent in a proceeding.
185.034(6)
(6) "Proceeding" means any threatened, pending or completed civil, criminal, administrative or investigative action, suit, arbitration or other proceeding, whether formal or informal, which involves foreign, federal, state or local law and which is brought by or in the right of the cooperative or by any other person.
185.034 History
History: 1987 a. 13;
1993 a. 112.
185.035
185.035
Mandatory indemnification. 185.035(1)
(1) A cooperative shall indemnify a director or officer, to the extent he or she has been successful on the merits or otherwise in the defense of a proceeding, for all reasonable expenses incurred in the proceeding if the director or officer was a party because he or she is a director or officer of the cooperative.
185.035(2)(a)(a) In cases not included under
sub. (1), a cooperative shall indemnify a director or officer against liability incurred by the director or officer in a proceeding to which the director or officer was a party because he or she is a director or officer of the cooperative, unless liability was incurred because the director or officer breached or failed to perform a duty he or she owes to the cooperative and the breach or failure to perform constitutes any of the following:
185.035(2)(a)1.
1. A wilful failure to deal fairly with the cooperative, its members or stockholders in connection with a matter in which the director or officer has a material conflict of interest.
185.035(2)(a)2.
2. A violation of criminal law, unless the director or officer had reasonable cause to believe his or her conduct was lawful or no reasonable cause to believe his or her conduct was unlawful.
185.035(2)(a)3.
3. A transaction from which the director or officer derived an improper personal profit.
185.035(2)(b)
(b) Determination of whether indemnification is required under this subsection shall be made under
s. 185.036.
185.035(2)(c)
(c) The termination of a proceeding by judgment, order, settlement or conviction, or upon a plea of no contest or an equivalent plea, does not, by itself, create a presumption that indemnification of the director or officer is not required under this subsection.
185.035(3)
(3) A director or officer who seeks indemnification under this section shall make a written request to the cooperative.
185.035(4)
(4) Indemnification under this section is not required if the director or officer has previously received indemnification or allowance of expenses from any person, including the cooperative, in connection with the same proceeding.
185.035 History
History: 1987 a. 13.
185.035 Annotation
Cooperative indemnification. La Rowe and Weine. WBB Sept. 1988.
185.036
185.036
Determination of right to indemnification. Unless otherwise provided by the articles or bylaws or by written agreement between the director or officer and the cooperative, the director or officer seeking indemnification under
s. 185.035 (2) shall select one of the following means for determining his or her right to indemnification:
185.036(1)
(1) By majority vote of a quorum of the board consisting of directors not at the time parties to the same or related proceedings. If a quorum of disinterested directors cannot be obtained, by majority vote of a committee duly appointed by the board and consisting solely of 2 or more directors not at the time parties to the same or related proceedings. Directors who are parties to the same or related proceedings may participate in the designation of members of the committee.
185.036(2)
(2) By independent legal counsel selected by a quorum of the board or its committee in the manner prescribed in
sub. (1) or, if unable to obtain such a quorum or committee, by a majority vote of the full board, including directors who are parties to the same or related proceedings.
185.036(3)
(3) By a panel of 3 arbitrators consisting of one arbitrator selected by those directors entitled under
sub. (2) to select independent legal counsel, one arbitrator selected by the director or officer seeking indemnification and one arbitrator selected by the 2 arbitrators previously selected.
185.036(4)
(4) By a majority vote of a quorum of the members. Members who are at the time parties to the same or related proceedings, whether as plaintiffs or defendants or in any other capacity, may not vote in making the determination.
185.036(6)
(6) By any other method provided for in any additional right to indemnification permitted under
s. 185.038.
185.036 History
History: 1987 a. 13.
185.037
185.037
Allowance of expenses as incurred. Upon written request by a director or officer who is a party to a proceeding, a cooperative may pay or reimburse his or her reasonable expenses as incurred if the director or officer provides the cooperative with all of the following:
185.037(1)
(1) A written affirmation of his or her good faith belief that he or she has not breached or failed to perform his or her duties to the cooperative.
185.037(2)
(2) A written undertaking, executed personally or on his or her behalf, to repay the allowance and, if required by the cooperative, to pay reasonable interest on the allowance to the extent that it is ultimately determined under
s. 185.036 that indemnification under
s. 185.035 (2) is not required and that indemnification is not ordered by a court under
s. 185.039 (2) (b). The undertaking under this subsection shall be an unlimited general obligation of the director or officer and may be accepted without reference to his or her ability to repay the allowance. The undertaking may be secured or unsecured.
185.037 History
History: 1987 a. 13.
185.038
185.038
Additional rights to indemnification and allowance of expenses. 185.038(1)
(1) Except as provided in
sub. (2),
ss. 185.035 and
185.037 do not preclude any additional right to indemnification or allowance of expenses that a director or officer may have under any of the following:
185.038(1)(b)
(b) A written agreement between the director or officer and the cooperative.
185.038(1)(d)
(d) A resolution, after notice, adopted by a majority vote of members who are entitled to vote.
185.038(2)
(2) Regardless of the existence of an additional right under
sub. (1), the cooperative may not indemnify a director or officer, or permit a director or officer to retain any allowance of expenses unless it is determined by or on behalf of the cooperative that the director or officer did not breach or fail to perform a duty he or she owes to the cooperative which constitutes conduct under
s. 185.035 (2) (a) 1.,
2.,
3. or
4. A director or officer who is a party to the same or related proceeding for which indemnification or an allowance of expenses is sought may not participate in a determination under this subsection.
185.038(3)
(3) Sections 185.034 to
185.042 do not affect a cooperative's power to pay or reimburse expenses incurred by a director or officer in any of the following circumstances:
185.038(3)(a)
(a) As a witness in a proceeding to which he or she is not a party.
185.038(3)(b)
(b) As a plaintiff or petitioner in a proceeding because he or she is or was an employee, agent, director or officer of the cooperative.
185.038 History
History: 1987 a. 13.
185.039
185.039
Court-ordered indemnification. 185.039(1)
(1) Except as provided otherwise by written agreement between the director or officer and the cooperative, a director or officer who is a party to a proceeding may apply for indemnification to the court conducting the proceeding or to another court of competent jurisdiction. Application shall be made for an initial determination by the court under
s. 185.036 (5) or for review by the court of an adverse determination under
s. 185.036 (1),
(2),
(3),
(4) or
(6). After receipt of an application, the court shall give any notice it considers necessary.
185.039(2)
(2) The court shall order indemnification if it determines any of the following:
185.039(2)(a)
(a) That the director or officer is entitled to indemnification under
s. 185.035 (1) or
(2). If the court also determines that the cooperative unreasonably refused the director's or officer's request for indemnification, the court shall order the cooperative to pay the director's or officer's reasonable expenses incurred to obtain the court-ordered indemnification.
185.039(2)(b)
(b) That the director or officer is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, regardless of whether indemnification is required under
s. 185.035 (2).
185.039 History
History: 1987 a. 13.
185.04
185.04
Indemnification and allowance of expenses of employees and agents. A cooperative may indemnify and allow reasonable expenses of an employee or agent who is not a director or officer to the extent provided by the articles or bylaws, by general or specific action of the board or by contract.
185.04 History
History: 1987 a. 13.
185.041
185.041
Insurance. A cooperative may purchase and maintain insurance on behalf of an individual who is an employee, agent, director or officer of the cooperative against liability asserted against and incurred by the individual in his or her capacity as an employee, agent, director or officer, or arising from his or her status as an employee, agent, director or officer, regardless of whether the cooperative is required or authorized to indemnify or allow expenses to the individual against the same liability under
ss. 185.035,
185.037,
185.038 and
185.04.
185.041 History
History: 1987 a. 13.
185.042
185.042
Indemnification and insurance against securities law claims. 185.042(1)(1) It is the public policy of this state to require or permit indemnification, allowance of expenses and insurance for any liability incurred in connection with a proceeding involving securities regulation described under
sub. (2) to the extent required or permitted under
ss. 185.034 to
185.041.
185.042(2)
(2) Sections 185.034 to
185.041 apply, to the extent applicable to any other proceeding, to any proceeding involving a federal or state statute, rule or regulation regulating the offer, sale or purchase of securities, securities brokers or dealers, or investment companies or investment advisers.
185.042 History
History: 1987 a. 13.
185.043
185.043
Incorporators. Five or more adults, one of whom must be a resident, may form a cooperative by signing, acknowledging and filing articles.
