§ 7-6-51 - Distribution of assets. - Rhode Island Statutes

SECTION 7-6-51

   § 7-6-51  Distribution of assets. –The assets of a corporation in the process of dissolution shall be applied anddistributed as follows:

   (1) All liabilities and obligations of the corporation shallbe paid and discharged, or adequate provision shall be made for their paymentand discharge;

   (2) Assets held by the corporation upon condition requiringreturn, transfer, or conveyance, which condition occurs by reason of thedissolution, shall be returned, transferred, or conveyed in accordance with therequirements;

   (3) Assets received and held by the corporation subject tolimitations permitting their use only for charitable, religious, eleemosynary,benevolent, educational, or similar purposes, but not held upon a conditionrequiring return, transfer, or conveyance by reason of the dissolution, shallbe transferred or conveyed to one or more domestic or foreign corporations,societies, or organizations engaged in activities substantially similar tothose of the dissolving corporation, pursuant to a plan of distribution adoptedas provided in this chapter or as otherwise provided in its articles ofincorporation or bylaws;

   (4) Any other assets shall be distributed in accordance withthe provisions of the articles of incorporation or the bylaws to the extentthat the articles of incorporation or bylaws determine the distributive rightsof members, or any class or classes of members, or provide for distribution toothers;

   (5) Any remaining assets may be distributed to any persons,societies, organizations, or domestic or foreign corporations, whether forprofit or nonprofit, that may be specified in a plan of distribution adopted asprovided in this chapter.