181.1161(3) (3) A plan of conversion shall set forth all of the following:
181.1161(3)(a) (a) The name, form of business entity, and the identity of the jurisdiction governing the business entity that is to be converted.
181.1161(3)(b) (b) The name, form of business entity, and the identity of the jurisdiction that will govern the new business entity.
181.1161(3)(c) (c) The terms and conditions of the conversion.
181.1161(3)(d) (d) The manner and basis of converting the shares or other ownership interests of the business entity that is to be converted into the shares or other ownership interests of the new form of business entity.
181.1161(3)(e) (e) The effective date and time of the conversion, if the conversion is to be effective other than at the close of business on the date of filing the certificate of conversion, as provided under s. 181.0123.
181.1161(3)(f) (f) A copy of the articles of incorporation, articles of organization, certificate of limited partnership, or other similar governing document of the business entity after conversion.
181.1161(3)(g) (g) Other provisions relating to the conversion, as determined by the business entity.
181.1161(4) (4) When a conversion is effective, all of the following shall occur:
181.1161(4)(a)1.1. Except with respect to taxation laws of each jurisdiction that are applicable upon the conversion of the business entity, the business entity that was converted is no longer subject to the applicable law of the jurisdiction that governed the organization of the prior form of business entity and is subject to the applicable law of the jurisdiction that governs the new form of business entity.
181.1161(4)(a)2. 2. If the conversion is from or to a business entity under the laws applicable to which one or more of the owners thereof is liable for the debts and obligations of such business entity, such owner or owners shall continue to be or become so liable for debts and obligations of such business entity, but only for such debts and obligations accrued during the period or periods in which such laws are applicable to such owner or owners. This subdivision does not affect liability under any taxation laws.
181.1161(4)(b) (b) The business entity continues to have all liabilities of the business entity that was converted.
181.1161(4)(c) (c) The business entity continues to be vested with title to all property owned by the business entity that was converted without reversion or impairment.
181.1161(4)(d) (d) The articles of incorporation, articles of organization, certificate of limited partnership, or other similar governing document, whichever is applicable, of the business entity are as provided in the plan of conversion.
181.1161(4)(e) (e) All other provisions of the plan of conversion apply.
181.1161(5) (5) After a plan of conversion is submitted and approved, the business entity that is to be converted shall deliver to the department for filing a certificate of conversion that includes all of the following:
181.1161(5)(a) (a) The plan of conversion.
181.1161(5)(b) (b) A statement that the plan of conversion was approved in accordance with the applicable law of the jurisdiction that governs the organization of the business entity.
181.1161(5)(bm) (bm) A statement indicating whether the business entity that is to be converted has a fee simple ownership interest in any Wisconsin real estate.
181.1161(5)(c) (c) The registered agent and registered office, the record agent and record office, or other similar agent and office of the business entity before and after conversion.
181.1161(6) (6) Any civil, criminal, administrative, or investigatory proceeding that is pending by or against a business entity that is converted may be continued by or against the business entity after the effective date of conversion.
181.1161 History History: 2001 a. 44; 2005 a. 476.
181.1161 Annotation Next Economy Legislation: Allowing Complex Business Reorganizations. Boucher, Sosnowski, & Nichols. Wis. Law. Aug. 2002.
subch. XII of ch. 181 SUBCHAPTER XII
SALE OF ASSETS
181.1201 181.1201 Sale of assets in regular course of activities and mortgage of assets.
181.1201(1) (1) Role of board. A corporation may, on the terms and conditions and for the consideration determined by the board, do any of the following:
181.1201(1)(a) (a) Sell, lease, exchange or otherwise dispose of all, or substantially all, of its property in the usual and regular course of its activities.
181.1201(1)(b) (b) Sell, lease, exchange or otherwise dispose of less than substantially all of its property whether or not in the usual and regular course of activities.
181.1201(1)(c) (c) Mortgage, pledge, dedicate to the repayment of indebtedness, whether with or without recourse, or otherwise encumber any or all of its property whether or not in the usual and regular course of its activities.
181.1201(2) (2)Role of members. Unless required by the articles of incorporation or bylaws, approval of the members or any other person of a transaction described in sub. (1) is not required.
181.1201 History History: 1997 a. 79.
181.1202 181.1202 Sale of assets other than in regular course of activities.
181.1202(1)(1) When permitted. A corporation may sell, lease, exchange or otherwise dispose of all, or substantially all, of its property, with or without the goodwill, other than in the usual and regular course of its activities on the terms and conditions and for the consideration determined by the corporation's board if the proposed transaction is authorized under sub. (2).
181.1202(2) (2)Approval requirements in general. Unless this chapter, the articles of incorporation or the bylaws require a greater vote or voting by class, the proposed transaction to be authorized must be approved by all of the following:
181.1202(2)(a) (a) Unless the articles of incorporation or bylaws provide otherwise, the board.
181.1202(2)(b) (b) The members with voting rights, if any, by two-thirds of the votes cast or a majority of the voting power, whichever is less.
181.1202(2)(c) (c) A 3rd person, in writing, whose approval is required by a provision of the articles of incorporation.
181.1202(3) (3)Corporation without members. If the corporation does not have members the transaction must be approved by a vote of a majority of the directors in office at the time the transaction is approved. In addition the corporation shall provide notice of any board meeting at which such approval is to be obtained in accordance with s. 181.0822 (3). The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the sale, lease, exchange or other disposition of all, or substantially all, of the property or assets of the corporation and contain or be accompanied by a copy or summary of a description of the transaction.
181.1202(4) (4)Notice requirements. If the corporation seeks to have the transaction approved by the members at a membership meeting, the corporation shall give notice to its members of the proposed membership meeting in accordance with s. 181.0705. The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the sale, lease, exchange, or other disposition of all, or substantially all, of the property or assets of the corporation and contain or be accompanied by a copy or summary of a description of the transaction.
181.1202(5) (5)Written consents or ballots. If the board needs to have the transaction approved by the members by written consent or written ballot, the material soliciting the approval shall contain or be accompanied by a copy or summary of a description of the transaction.
181.1202(6) (6)Abandonment of transaction. After a sale, lease, exchange, or other disposition of property is authorized, the transaction may be abandoned, subject to any contractual rights, without further action by the members or any other person who approved the transaction in accordance with the procedure set forth in the resolution proposing the transaction or, if none is set forth, in the manner determined by the board.
181.1202 History History: 1997 a. 79.
subch. XIII of ch. 181 SUBCHAPTER XIII
DISTRIBUTIONS
181.1301 181.1301 Prohibited distributions. Except as provided in s. 181.1302, a corporation may not make any distributions.
181.1301 History History: 1997 a. 79.
181.1302 181.1302 Authorized distributions.
181.1302(1) (1) Purchase of memberships. A corporation may purchase its memberships if after the purchase is completed all of the following conditions are met:
181.1302(1)(a) (a) The corporation would be able to pay its debts as they become due in the usual course of its activities.
181.1302(1)(b) (b) The corporation's total assets would at least equal the sum of its total liabilities.
181.1302(2) (2)Distributions on dissolution. Corporations may make distributions upon dissolution under subch. XIV.
181.1302(3) (3)Distributions to nonprofit corporations. A corporation may make a distribution or other payment to another domestic or foreign corporation, if all of the following conditions are met:
181.1302(3)(a) (a) The articles of incorporation, or, if the articles of incorporation so provide, the bylaws, state that a distribution or other payment may be made under this subsection.
181.1302(3)(b) (b) The distribution or other payment is made in accordance with the stated purpose of the corporation.
181.1302(3)(c) (c) The corporation would be able to pay its debts as they become due in the usual course of its activities.
181.1302(3)(d) (d) The corporation's total assets would equal at least the sum of its total liabilities.
181.1302(3)(e) (e) The domestic or foreign corporation to which the distribution or other payment is made may not distribute any part of its income to members, directors or officers and is exempt from taxation under 26 USC 501.
181.1302(4) (4)Other distributions. A corporation may make a distribution that is not permitted under subs. (1) to (3) only if all of the following apply:
181.1302(4)(a) (a) The articles of incorporation state that a distribution may be made under this subsection.
181.1302(4)(b) (b) The distribution is made in accordance with the stated purpose of the corporation.
181.1302(4)(c) (c) The corporation would be able to pay its debts as they become due in the usual course of its activities.
181.1302(4)(d) (d) The corporation's total assets would equal at least the sum of its total liabilities.
181.1302 History History: 1997 a. 79.
subch. XIV of ch. 181 SUBCHAPTER XIV
DISSOLUTION
181.1401 181.1401 Dissolution by incorporators, directors, members and 3rd persons.
181.1401(1) (1) In general.
181.1401(1)(a)(a) Prior to the election of directors, unless this chapter, the articles of incorporation or the bylaws require a greater vote or voting by class, dissolution is authorized if it is approved by a majority of the incorporators.
181.1401(1)(b) (b) After the election of directors, unless this chapter, the articles of incorporation or the bylaws require a greater vote or voting by class, dissolution is authorized if it is approved by all of the following:
181.1401(1)(b)1. 1. Unless the articles of incorporation or bylaws provide otherwise, the board.
181.1401(1)(b)2. 2. The members with voting rights, if any, by two-thirds of the votes cast or a majority of the voting power, whichever is less.
181.1401(1)(b)3. 3. A 3rd person, in writing, whose approval is required by a provision of the articles of incorporation.
181.1401(2) (2)Corporation without members with voting rights. If the corporation does not have members with voting rights, dissolution must be approved by a vote of a majority of the directors in office at the time the transaction is approved. In addition, the corporation shall provide notice of any board of directors' meeting at which such approval is to be obtained in accordance with s. 181.0822 (3). The notice must also state that the purpose, or one of the purposes, of the meeting is to consider dissolution of the corporation and contain or be accompanied by a copy or summary of the plan of dissolution.
181.1401(3) (3)Notice requirements. If the board seeks to have dissolution approved by the members at a membership meeting, the corporation shall give notice to its members of the proposed membership meeting in accordance with s. 181.0705. The notice must also state that the purpose, or one of the purposes, of the meeting is to consider dissolving the corporation and contain or be accompanied by a copy or summary of the plan of dissolution.
181.1401(4) (4)Written consents or ballots. If the board seeks to have dissolution approved by the members by written consent or written ballot, the material soliciting the approval shall contain or be accompanied by a copy or summary of the plan of dissolution.
181.1401(5) (5)Distribution of assets. The plan of dissolution shall indicate to whom the assets owned or held by the corporation will be distributed after all creditors have been paid.
181.1401 History History: 1997 a. 79.
181.1403 181.1403 Articles of dissolution.
181.1403(1) (1) Filing requirements. At any time after dissolution is authorized, the corporation may dissolve by delivering to the department for filing articles of dissolution that include all of the following information:
181.1403(1)(a) (a) The name of the corporation.
181.1403(1)(b) (b) The date dissolution was authorized.
181.1403(1)(c) (c) A statement that dissolution was approved by a sufficient vote of the board.
181.1403(1)(d) (d) If approval of members was not required, a statement to that effect and a statement that dissolution was approved by a sufficient vote of the board or of the incorporators.
181.1403(1)(e) (e) If approval by members is required, a statement that dissolution was approved by a sufficient vote of the members of each class entitled to vote on dissolution.
181.1403(1)(f) (f) If approval of dissolution by a person other than the members, the board or the incorporators is required under s. 181.1401 (1) (b) 3., a statement that the approval was obtained.
181.1403(1)(g) (g) If the corporation is to retain the exclusive use of its name for less than 120 days after the effective date of its articles of dissolution, as provided in s. 181.1405 (3), a statement specifying the shorter period.
181.1403(2) (2)Effective date. A corporation is dissolved upon the effective date of its articles of dissolution.
Loading...
Loading...
2011-12 Wisconsin Statutes updated through 2013 Wis. Act 380 and all Supreme Court Orders entered before Dec. 13, 2014. Published and certified under s. 35.18. Changes effective after Dec. 13, 2014 are designated by NOTES. (Published 12-13-14)