Section 14.05: Effect of dissolution
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/ma/part-i/title-xxii/chapter-156d/14-5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 14.05. EFFECT OF DISSOLUTION
(a)A dissolved corporation continues its corporate existence but may not carry on any business except such as is necessary in connection with winding up and liquidating its business and affairs, including:
(1)collecting its assets;
(2)disposing of its properties that will not be distributed in kind to its shareholders;
(3)making adequate provision, by payment or otherwise, and after giving effect to the provisions of sections 14.06, 14.07 and 14.08, for all of the corporation's existing and reasonably foreseeable debts, liabilities, and obligations, whether or not liquidated, matured, asserted, or contingent;
(4)distributing its remaining property among its shareholders according to their interests; and
(5)doing every other act necessary to wind up and liquidate its business and affairs.
(b)Dissolution of a corporation shall not:
(1)transfer title to the corporation's property;
(2)prevent transfer of its shares or securities, although the authorization to dissolve may provide for closing the corporation's share transfer records;
(3)subject its directors or officers to standards of conduct different from those prescribed in PART 8;
(4)change quorum or voting requirements for its board of directors or shareholders; change provisions for selection, resignation, or removal of its directors or officers or both; or change provisions for amending its bylaws;
(5)prevent commencement of a proceeding by or against the corporation in its corporate name;
(6)abate or suspend a proceeding pending by or against the corporation on the effective date of dissolution; or
(7)terminate the authority of the registered agent of the corporation.