Code of Virginia - Title 13.1 Corporations - Section 13.1-745 Effect of dissolution

§ 13.1-745. Effect of dissolution

A. A dissolved corporation continues its corporate existence but may not carry on any business except that appropriate to wind up and liquidate its business and affairs, including:

1. Collecting its assets;

2. Disposing of its properties that will not be distributed in kind to its shareholders;

3. Discharging or making provision for discharging its liabilities;

4. Distributing its remaining property among its shareholders according to their interests; and

5. Doing every other act necessary to wind up and liquidate its business and affairs.

B. Dissolution of a corporation does not:

1. Transfer title to the corporation's property;

2. Prevent transfer of its shares or securities, although the authorization to dissolve may provide for closing the corporation's share transfer records;

3. Subject its directors to standards of conduct different from those prescribed in Article 9 (§ 13.1-673 et seq.);

4. Change quorum or voting requirements for its board of directors or shareholders; change provisions for selection, resignation, or removal of its directors or officers; or change provisions for amending its bylaws;

5. Prevent commencement of a proceeding by or against the corporation in its corporate name;

6. Abate or suspend a proceeding pending by or against the corporation on the effective date of dissolution; or

7. Terminate the authority of the registered agent of the corporation.

(Code 1950, §§ 13.1-83, 13.1-84; 1956, c. 428; 1985, c. 522.)

Sections:  Previous  13.1-739  13.1-740  13.1-741  13.1-741.1  13.1-742  13.1-743  13.1-744  13.1-745  13.1-746  13.1-746.1  13.1-746.2  13.1-746.3  13.1-747  13.1-748  13.1-749  Next

Last modified: April 16, 2009