36 U.S.C. § 31111 — Distribution of assets on dissolution or final liquidation

submitted 28 years ago by Pub. L. 105-225 to r/title-36-PATRIOTIC-AND-NATIONAL-OBSERVANCES-CEREMONIES-AND-ORGANIZATIONS · 38 words · no verdicts yet

in plain englishAI-generated · not legal advice

If the corporation dissolves or fully winds down, its leftover assets get distributed after all debts are paid. The board of directors decides how to distribute them. That distribution must still follow the corporation's constitution and bylaws.

This rule covers what happens to the corporation's property if it dissolves or completely winds down. First, all of the corporation's debts and liabilities must be paid off. Whatever assets are left after that get distributed however the board of directors decides — but the board's decision must still comply with the corporation's own constitution and bylaws.

the actual law source: uscode.house.gov ↗public domain

On dissolution or final liquidation of the corporation, any assets remaining after the discharge of all liabilities shall be distributed as provided by the board of directors, but in compliance with the constitution and bylaws of the corporation.

Source credit: (Pub. L. 105–225, Aug. 12, 1998, 112 Stat. 1329.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-225 · 112 Stat. 1329

A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-225 on 1998-08-12.

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