A member may maintain a derivative action to enforce a right of a limited cooperative association if:

1. (1) the member demands that the association bring an action to enforce the right; and

2. (2) any of the following occur:

   1. (a) the association does not, not later than 90 days after the member makes the demand, agree to bring the action;
   2. (b) the association notifies the member that it has rejected the demand;
   3. (c) irreparable harm to the association would result by waiting 90 days after the member makes the demand; or
   4. (d) the association agrees to bring an action demanded and fails to bring the action within a reasonable time.

Enacted by Chapter 363, 2008 General Session