273.303 Distribution of assets.
235 words·~1 min read·
/ky/chapter-273/273-303A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The assets of a corporation in the process of dissolution shall be applied and distributed as follows:
(1)All liabilities and obligations of the corporation shall be paid and discharged, or
adequate provisions shall be made therefor;
(2)Assets held by the corporation upon condition requiring return, transfer or
conveyance, which condition occurs by reason of the dissolution, shall be returned,
transferred or conveyed in accordance with such requirements;
(3)Assets received and held by the corporation subject to limitations permitting their
use only for charitable, religious, eleemosynary, benevolent, educational or similar
purposes, but not held upon a condition requiring return, transfer or conveyance by
reason of the dissolution, shall be transferred or conveyed to one or more domestic
or foreign nonprofit corporations, societies, or organizations engaged in activities
substantially similar to those of the dissolving corporation, pursuant to a plan of
distribution adopted as provided in KRS 273.161 to 273.390;
(4)Other assets, if any, shall be distributed in accordance with the provisions of the
articles of incorporation or the bylaws to the extent that the articles of incorporation
or bylaws determine the distributive rights of members, or any class or classes of
members, or provide for distribution to others;
(5)Any remaining assets may be distributed to such nonprofit societies, organizations
or domestic or foreign corporations, as may be specified in a plan of distribution
adopted as provided in KRS 273.161 to 273.390.