§ 30-25-702 — WINDING UP

Idaho § 30-25-702

• Jurisdiction: Idaho
• Title 30: CORPORATIONS
• Part 7: DISSOLUTION AND WINDING UP
• Ch. 25: LIMITED LIABILITY COMPANIES

Text

(a) A dissolved limited liability company shall wind up its activities and affairs and, except as otherwise provided in section 30-25-703, Idaho Code, the company continues after dissolution only for the purpose of winding up.
(b) In winding up its activities and affairs, a limited liability company:
(1) Shall discharge the company’s debts, obligations, and other liabilities, settle and close the company’s activities and affairs, and marshal and distribute the assets of the company; and
(2) May:
(A) Deliver to the secretary of state for filing a statement of dissolution stating the name of the company and that the company is dissolved;
(B) Preserve the company activities, affairs, and property as a going concern for a reasonable time;
(C) Prosecute and defend actions and proceedings, whether civil, criminal, or administrative;
(D) Transfer the company’s property;
(E) Settle disputes by mediation or arbitration;
(F) Deliver to the secretary of state for filing a statement of termination stating the name of the company and that the company is terminated; and
(G) Perform other acts necessary or appropriate to the winding up.
(c) If a dissolved limited liability company has no members, the legal representative of the last person to have been a member may wind up the activities and affairs of the company. If the person does so, the person has the powers of a sole manager under section 30-25-407 (c), Idaho Code, and is deemed to be a manager for the purposes of section 30-25-304 (a), Idaho Code.
(d) If the legal representative under subsection (c) of this section declines or fails to wind up the limited liability company’s activities and affairs, a person may be appointed to do so by the consent of transferees owning a majority of the rights to receive distributions as transferees at the time the consent is to be effective. A person appointed under this subsection:
(1) Has the powers of a sole manager under section 30-25-407 (c), Idaho Code, and is deemed to be a manager for the purposes of section 30-25-304 (a), Idaho Code; and
(2) Shall deliver promptly to the secretary of state for filing an amendment to the company’s certificate of organization stating:
(A) That the company has no members;
(B) The name and street and mailing addresses of the person; and
(C) That the person has been appointed pursuant to this subsection to wind up the company.
(e) The district court may order judicial supervision of the winding up of a dissolved limited liability company, including the appointment of a person to wind up the company’s activities and affairs:
(1) On the application of a member, if the applicant establishes good cause;
(2) On the application of a transferee, if:
(A) The company does not have any members;
(B) The legal representative of the last person to have been a member declines or fails to wind up the company’s activities; and
(C) Within a reasonable time following the dissolution, a person has not been appointed pursuant to subsection (c) of this section; or
(3) In connection with a proceeding under section 30-25-701 (a), Idaho Code.

Legislative History

[30-25-702, added 2015, ch. 243, sec. 49, p. 891.]