§ 1972. Proposal of voluntary dissolution.

275 words·~1 min read·/pa/title-15/chapter-19/1972

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- Any business corporation that has commenced business may dissolve voluntarily in the manner provided in this subchapter and wind up its affairs in the manner provided in section 1975 (relating to predissolution provision for liabilities) or Subchapter H (relating to postdissolution provision for liabilities). Voluntary dissolution shall be proposed by the adoption by the board of directors of a resolution recommending that the corporation be dissolved voluntarily. The resolution shall contain a statement either that the dissolution shall proceed under section 1975 or that the dissolution shall proceed under Subchapter H. The resolution may set forth provisions for the distribution to shareholders of any surplus remaining after paying or providing for all liabilities of the corporation, including provisions for special treatment of shares held by any shareholder or group of shareholders as authorized by, and subject to the provisions of, section 1906 (relating to special treatment of holders of shares of same class or series).

(b)Submission to shareholders.-- The board of directors shall direct that the resolution recommending dissolution be submitted to a vote of the shareholders of the corporation entitled to vote thereon at a regular or special meeting of the shareholders.

(c)Cross reference.-- See section 1974(d) (relating to amendment of winding-up election).

15c1972v

(Dec. 19, 1990, P.L.834, No.198, eff. imd.; Dec. 18, 1992, P.L.1333, No.169, eff. 60 days; June 22, 2001, P.L.418, No.34, eff. 60 days)

2001 Amendment. Act 34 amended subsecs.

(a)and (b).

1992 Amendment. Act 169 amended subsec.

(a)and added subsec. (c).

Cross References. Section 1972 is referred to in sections 1906, 1975, 1997 of this title.

15c1973s