29-3707. Disposition of assets in winding up
170 words·~1 min read·
/az/title-29/29-3707A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. In winding up its activities and affairs, a limited liability company shall apply its assets to discharge the company's obligations to creditors, including members that are creditors.
B. After a limited liability company complies with subsection A of this section, any surplus assets must be distributed in the following order, subject to any charging order in effect under section 29-3503:
1. To each person owning a transferable interest that reflects contributions made and not previously returned, an amount equal to the value of the unreturned contributions.
2. Among persons owning transferable interests in proportion to their respective rights to share in distributions immediately before the dissolution of the company.
C. If a limited liability company does not have sufficient surplus assets to comply with subsection B, paragraph 1 of this section, any surplus must be distributed among the owners of transferable interests in proportion to the value of the respective unreturned contributions.
D. All distributions made under subsections B and C of this section must be paid in money.