§ 12657 Distribution To Members

This law says when a company closes down, it must share its money or stuff fairly with its owners. It can be done all at once or in parts, as long as it's fair and follows the company's rules.

Key Takeaways

•When a company closes, its money or stuff must be shared fairly with its owners.
•The sharing can happen all at once or in parts, as long as it's fair.
•The company must follow its own rules when sharing the money or stuff.

Example

A small toy company goes out of business and has $100,000 left after selling everything.

The company must split the $100,000 fairly among its owners. If there are 10 owners, each gets $10,000. They can get the money all at once or in smaller payments over time.

Distribution may be made either in money or in property or securities and either in installments from time to time or as a whole, if this can be done fairly and ratably and in conformity with the provisions of the articles and bylaws and shall be made as soon as reasonably consistent with the beneficial liquidation of the corporation assets. (Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

This law says when a company closes down, it must share its money or stuff fairly with its owners. It can be done all at once or in parts, as long as it's fair and follows the company's rules.

Key Takeaways

•When a company closes, its money or stuff must be shared fairly with its owners.
•The sharing can happen all at once or in parts, as long as it's fair.
•The company must follow its own rules when sharing the money or stuff.

Example

A small toy company goes out of business and has $100,000 left after selling everything.

The company must split the $100,000 fairly among its owners. If there are 10 owners, each gets $10,000. They can get the money all at once or in smaller payments over time.

Key Takeaways

Example

Key Terms

References

§ 12657 Distribution To Members

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References