§153713 Distribution of assets on dissolution or final liquidation

Summary

When the corporation is dissolved or finally wound up, its assets must be handled in this order. First, pay all debts or make proper plans to pay them. Second, return or transfer any property that has a condition requiring return. Third, give property meant for charitable, religious, benevolent, educational, or similar purposes (but not returnable) to suitable domestic or foreign organizations under an approved distribution plan. Fourth, follow the articles of incorporation or bylaws for any assets those rules cover. Finally, any remaining assets may be given to people or nonprofit groups under a distribution plan the council of administration adopts, as long as it follows the corporation’s constitution and bylaws.