16-6a-1405. Effect of dissolution

(1) A dissolved nonprofit corporation continues its corporate existence but may not carry on any activities except as is appropriate to wind up and liquidate its affairs, including:
     (a) collecting its assets;
     (b) returning, transferring, or conveying assets held by the nonprofit corporation upon a condition requiring return, transfer, or conveyance, which condition occurs by reason of the dissolution, in accordance with the condition;
     (c) transferring, subject to any contractual or legal requirements, its assets as provided in or authorized by its articles of incorporation or bylaws;
     (d) discharging or making provision for discharging its liabilities; and
     (e) doing every other act necessary to wind up and liquidate its assets and affairs.

(2) Dissolution of a nonprofit corporation does not:
     (a) transfer title to the nonprofit corporation's property including title to water rights, water conveyance facilities, or other assets of a nonprofit corporation organized to divert or distribute water to its members;
     (b) subject its directors or officers to standards of conduct different from those prescribed in this chapter;
     (c) change quorum or voting requirements for its board of directors or members;
     (d) change provisions for selection, resignation, or removal of its directors or officers, or both;
     (e) change provisions for amending its bylaws or its articles of incorporation;
     (f) prevent commencement of a proceeding by or against the nonprofit corporation in its corporate name; or
     (g) abate or suspend a proceeding pending by or against the nonprofit corporation on the effective date of dissolution.

(3) Nothing in this section may be applied in a manner inconsistent with a court's power of judicial dissolution exercised in accordance with Section 16-6a-1414 or 16-6a-1415


Amended 2007, ch. 315; 2015, ch. 240, eff. May 12, 2015.

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