2006 Minnesota Statutes

308B.805 MERGER OF SUBSIDIARY.
    Subdivision 1. When authorized; contents of plan. (a) For purposes of this section,
"subsidiary" means a domestic cooperative, a Minnesota limited liability company, or a foreign
cooperative, and "cooperative" means a domestic cooperative. A Minnesota limited liability
company may only participate in a merger under this section to the extent authorized under
section 322B.755. A parent domestic cooperative or a subsidiary that is a domestic cooperative
may complete the merger of a subsidiary as provided in this section, provided however, if
either the parent or the subsidiary is a business entity organized under the laws of this state,
the merger of the subsidiary is not authorized under this section unless the law governing the
business entity expressly authorizes merger with a cooperative. A parent cooperative owning at
least 90 percent of the outstanding ownership interests of each class and series of a subsidiary
directly, or indirectly through related organizations, other than classes or series that, absent this
section, would otherwise not be entitled to vote on the merger, may merge the subsidiary into
itself or into any other subsidiary at least 90 percent of the outstanding ownership interests of
each class and series of which is owned by the parent cooperative directly, or indirectly through
related organizations, other than classes or series that, absent this section, would otherwise not be
entitled to vote on the merger, without a vote of the members of itself or any subsidiary or may
merge itself, or itself and one or more of the subsidiaries, into one of the subsidiaries under this
section. A resolution approved by the affirmative vote of a majority of the directors of the parent
cooperative present shall set forth a plan of merger that contains:
(1) the name of the subsidiary or subsidiaries, the name of the parent, and the name of
the surviving cooperative;
(2) the manner and basis of converting the membership interests of the subsidiary or
subsidiaries or parent into securities of the parent, subsidiary, or of another cooperative or, in the
whole or in part, into money or other property;
(3) if the parent is a constituent cooperative but is not the surviving cooperative in the
merger, a provision for the pro rata issuance of membership interests of the surviving cooperative
to the holders of membership interests of the parent on surrender of any certificates for shares of
the parent; and
(4) if the surviving cooperative is a subsidiary, a statement of any amendments to the articles
of the surviving cooperative that will be part of the merger.
(b) If the parent is a constituent cooperative and the surviving cooperative in the merger, it
may change its cooperative name, without a vote of its members, by the inclusion of a provision
to that effect in the resolution of merger setting forth the plan of merger that is approved by the
affirmative vote of a majority of the directors of the parent present. Upon the effective date of the
merger, the name of the parent shall be changed.
(c) If the parent is a constituent cooperative but is not the surviving cooperative in the
merger, the resolution is not effective unless it is also approved by the affirmative vote of the
holders of a majority of the voting power of all membership interests of the parent entitled to vote
at a regular or special meeting if the parent is a cooperative, or in accordance with the laws under
which it is organized if the parent is a foreign business entity or cooperative.
    Subd. 2. Notice to members of subsidiary. Notice of the action, including a copy of the
plan of merger, shall be given to each member, other than the parent and any subsidiary of each
subsidiary that is a constituent cooperative in the merger before, or within ten days after, the
effective date of the merger.
    Subd. 3. Articles of merger; contents of articles. Articles of merger shall be prepared
that contain:
(1) the plan of merger;
(2) the number of outstanding membership interests of each series and class of each
subsidiary that is a constituent cooperative in the merger, other than the series or classes that,
absent this section, would otherwise not be entitled to vote on the merger, and the number of
membership interests of each series and class of the subsidiary or subsidiaries, other than series or
classes that, absent this section, would otherwise not be entitled to vote on the merger, owned by
the parent directly, or indirectly through related organizations; and
(3) a statement that the plan of merger has been approved by the parent under this section.
    Subd. 4. Articles signed, filed. The articles of merger shall be signed on behalf of the
parent and filed with the secretary of state.
    Subd. 5. Certificate. The secretary of state shall issue a certificate of merger to the parent
or its legal representative or, if the parent is a constituent cooperative but is not the surviving
cooperative in the merger, to the surviving cooperative or its legal representative.
    Subd. 6. Nonexclusivity. A merger among a parent and one or more subsidiaries or among
two or more subsidiaries of a parent may be accomplished under section 308B.801 instead of this
section, in which case this section does not apply.
History: 2003 c 105 art 1 s 69