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Can my cooperative expel me?

On Behalf of | Nov 30, 2022 | Condominiums & Cooperatives |

A cooperative can be beneficial for every member, but in some cases, there is a problem. If something happens, you may wonder if your position within the cooperative is at risk.

Texas law does allow cooperatives to remove members. But there are specific rules for how this can happen.

The notice

Before a vote can occur to decide whether to remove you from the cooperative, the group must provide you with a written notice. This must occur at least 11 days before the vote will take place. It must give you the reasoning for the decision. You will have the ability to speak at the meeting when the vote takes place to provide your side of the situation and anything else you wish to say to the other members.

The vote

A vote has to occur to kick you out. This can be at a special or regular meeting, and all members have the right to vote. For the measure to kick you out to pass, a majority of members must vote in favor of it.

The results

If the cooperative members decide to remove you from the group, the board of directors must buy out your holdings. They must pay you par value for your holdings. However, if buying you out would cause financial hardship that could dissolve the cooperative, the requirement does not apply.

Member removal from a cooperative is a serious matter. You have the right to know why they wish to kick you out and the right to speak up about the claims against you or the reason for the decision before members vote to expel you.