§ 1206.
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/vt/1206A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1206. Winding up
(a)A mutual benefit enterprise continues after dissolution only for purposes of winding up its activities.
(b)In winding up a mutual benefit enterprise’s activities, the board of directors shall cause the enterprise to:
(1)discharge its liabilities, settle and close its activities, and marshal and distribute its assets;
(2)preserve the enterprise or its property as a going concern for no more than a reasonable time;
(3)prosecute and defend actions and proceedings;
(4)transfer enterprise property; and
(5)perform other necessary acts.
(c)After dissolution and upon application of a mutual benefit enterprise, a member, or a holder of financial rights, the Superior Court may order judicial supervision of the winding up of the enterprise, including the appointment of a person to wind up the enterprise’s activities, if:
(1)after a reasonable time, the enterprise has not wound up its activities; or
(2)the applicant establishes other good cause.
(d)If a person is appointed pursuant to subsection
(c)of this section to wind up the activities of a mutual benefit enterprise, the enterprise shall promptly deliver to the Secretary of State for filing an amendment to the articles of organization to reflect the appointment. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)