New Jersey Statutes 42:2C-49. Winding up
Terms Used In New Jersey Statutes 42:2C-49
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- person: includes corporations, companies, associations, societies, firms, partnerships and joint stock companies as well as individuals, unless restricted by the context to an individual as distinguished from a corporate entity or specifically restricted to one or some of the above enumerated synonyms and, when used to designate the owner of property which may be the subject of an offense, includes this State, the United States, any other State of the United States as defined infra and any foreign country or government lawfully owning or possessing property within this State. See New Jersey Statutes 1:1-2
a. A dissolved limited liability company shall wind up its activities, and the company continues after dissolution only for the purpose of winding up.
b. In winding up its activities, a limited liability company:
(1) shall discharge the company’s debts, obligations, or other liabilities, settle and close the company’s activities, and marshal and distribute the assets of the company; and
(2) shall:
(a) deliver to the filing office for filing a certificate of dissolution stating the name of the company and such other information as may be required by the filing office to correctly identify the company and that the company is dissolved;
(b) preserve the company activities and property as a going concern for a reasonable time;
(c) prosecute and defend actions and proceedings, whether civil, criminal, or administrative;
(d) transfer the company’s property;
(e) settle disputes by mediation or arbitration;
(f) deliver to the filing office for filing a statement of termination stating the name of the company and that the company is terminated; and
(g) perform other acts necessary or appropriate to the winding up.
c. If a dissolved limited liability company has no members, the legal representative of the last person to have been a member may wind up the activities of the company. If the person does so, the person has the powers of a sole manager under subsection c. of section 37 of this act and is deemed to be a manager for the purposes of paragraph (2) of subsection a. of section 30 of this act.
d. If the legal representative under subsection c. of this section declines or fails to wind up the company’s activities, a person may be appointed to do so by the consent of transferees owning a majority of the rights to receive distributions as transferees at the time the consent is to be effective. A person appointed under this subsection:
(1) has the powers of a sole manager under subsection c. of section 37 of this act and is deemed to be a manager for the purposes of paragraph (2) of subsection a. of section 30 of this act; and
(2) shall promptly deliver to the filing office for filing an amendment to the company’s certificate of formation to:
(a) state that the company has no members;
(b) state that the person has been appointed pursuant to this subsection to wind up the company; and
(c) provide the street and mailing addresses of the person.
e. The Superior Court may order judicial supervision of the winding up of a dissolved limited liability company, including the appointment of a person to wind up the company’s activities:
(1) on application of a member, if the applicant establishes good cause;
(2) on the application of a transferee, if:
(a) the company does not have any members;
(b) the legal representative of the last person to have been a member declines or fails to wind up the company’s activities; and
(c) within a reasonable time following the dissolution a person has not been appointed pursuant to subsection d. of this section; or
(3) in connection with a proceeding under paragraph (4) or (5) of subsection a. of section 48 of this act.
L.2012, c.50, s.49.