Laserfiche WebLink
<br />c'"' <br />N <br />en <br /> <br />(.) <br /> <br />,::::> <br />':::J <br /> <br />C. <br /> <br />Assessment Authority. <br /> <br />The Ditch and Reservoir Companies Act provides in section <br /> <br />7-42-104, C.R.S., for the assessment of stock cend enforcement of <br /> <br />assessments. <br /> <br />Paragraph (1) authorizes the corporation to make <br /> <br />assessments pro rata on capital stock for the purpose of <br /> <br />repairing ditches and canals and the payment of principal and <br /> <br />interest on indebtedness. Paragraph (2) requires the assessment <br /> <br />to be submitted to shareholders for approval, yet the board may <br /> <br />act if the shareholders fail to approve the assessment within <br /> <br />ninety (90) days after the close of the company's fiscal year. <br /> <br />Paragraph (3) provides for the sale and forfeiture of shares <br /> <br />because of delinquent assessments and grants to the corporation a <br /> <br />perpetual lien on the shares to secure assessments. Delivery of <br /> <br />water can also be made contingent upon payment of assessments. <br /> <br />Finally, paragraph (4) addresses both collecting installments on <br /> <br />stock subscriptions and assessments on shares. A careful reading <br /> <br />of this last paragraph indicates that whereas a corporation has <br /> <br />the authority to sue to collect installments due on a stock <br /> <br />subscription, <br /> <br />the <br /> <br />corporate <br /> <br />enforce <br /> <br />to <br /> <br />delinquent <br /> <br />power <br /> <br />assessments appears to be limited to the forfeiture of shares. <br /> <br />For the most part, the Company's Bylaws follow state <br /> <br />statutes on the subject of assessments of shares. All classes of <br /> <br />stock are assessed to pay the Company's debt, maintenance and <br /> <br />operation of canals, officers' salaries and to establish a <br /> <br />contingency fund for the Company's financial stability. Bylaws, <br /> <br />Article VI, Section 5. Assessments are submitted to shareholders <br /> <br />12 <br />