Minnesota Statutes 317A.735 – Distribution of Assets
Subdivision 1.General.
In performing their duties under section 317A.725, the board, or the officers acting under the direction of the board, shall distribute the assets of the corporation in the following order of priority:
Terms Used In Minnesota Statutes 317A.735
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Donor: The person who makes a gift.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(1) distribution of assets received and held for a special use or purpose under subdivision 2;
(2) payment of costs and expenses of the dissolution proceedings, including attorney fees and disbursements;
(3) payment of debts, obligations, and liabilities of the corporation;
(4) distribution of assets pursuant to articles or bylaws of the dissolving corporation or the rules or canons of another organization under subdivision 3; and
(5) distribution of remaining assets under subdivision 4.
Subd. 2.Special use or purpose.
Assets of the corporation may not be diverted from the uses and purposes for which the assets have been received and held, or from the uses and purposes expressed or intended by the original donor.
Subd. 3.Articles, bylaws, or another organization.
Where the articles or bylaws of the dissolving corporation, or the rules or canons of another organization by which the dissolving corporation is bound, provide for a particular distribution of the assets of the dissolving corporation, the assets must be distributed accordingly.
Subd. 4.Remainder.
The distribution of assets held for or devoted to a charitable or public use or purpose is subject to section 501B.31.