§ 7-40-107 — Dividend only on dissolution

No dividend or distribution of the
property of any such corporation, association, or society shall be made until all
debts are fully paid and then only upon its final dissolution and surrender of
organization and name, nor shall any distribution be made except by a vote of a
majority of the members. When a distribution of any of their property is
contemplated, the directors, trustees, or managers shall file a statement, under
oath, in the office of the recorder of deeds in the county in which the business
office is located that all debts of the corporation, association, or society are paid,
and, in case a distribution is made before filing this statement under oath or if the
statement is willfully false, said directors, trustees, or managers shall be jointly and
severally liable for the debts of such corporation, association, or society. When a
final dissolution of any such corporation, association, or society, formed by virtue of
law, has been agreed upon, the directors, trustees, or managers shall file, in the
office of the secretary of state, a certificate thereof under seal of the corporation,
association, or society, and upon filing this certificate the organization shall cease
to exist.

Legislative History

Source: G.L. � 228. G.S. � 371. R.S. 08: � 1017. C.L. � 2383. CSA: C. 41, � 176. CRS 53: � 31-20-7. C.R.S. 1963: � 31-19-7. L. 2003: Entire section amended, p. 2204, � 8, effective July 1, 2004.