§ 10A-30-1.16 — Distribution of Assets on Dissolution; Applicable to Professional Associations Formed Prior to January 1, 1984

Alabama § 10A-30-1.16

• Jurisdiction: Alabama
• Title 10A: Alabama Business and Nonprofit Entities Code
• Ch. 30: Provisions Applicable to Exisiting Entities of a Type That May No Longer Be Formed:unincorporated Professional Associations and Close Corporations
• Art. 1: Unincorporated Professional Associations

Text

In the event of dissolution of a stock-type professional association, the board of governors, as trustees of the property of such professional association, shall apply the assets first to the payment of debts of the association and, secondly, to the holders of the stock as provided in the certificate of formation. In the event of dissolution of a nonstock-type association, the assets shall be distributed, or sold, and the net proceeds distributed first to the payment of debts of the association and, secondly, to or among the members of the association, as the certificate of formation shall provide.

Legislative History

(Acts 1961, No. 865, p. 1349, §13; §10-10-16; amended and renumbered by Act 2009-513, p. 967, §370.)