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.
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.
DISSOLUTION
181.1401
181.1401
Dissolution by incorporators, directors, members and 3rd persons. 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)(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.
181.1403 History
History: 1997 a. 79;
2001 a. 44.
181.1404
181.1404
Revocation of dissolution. 181.1404(1)
(1)
When permitted. A corporation may revoke its dissolution within 120 days of its effective date.
181.1404(2)
(2) How authorized. Revocation of dissolution must be authorized in the same manner as the dissolution was authorized unless that authorization permitted revocation by action of the board alone, in which event the board may revoke the dissolution without action by the members or any other person.
181.1404(3)
(3) Filing requirements. After the revocation of dissolution is authorized, the corporation may revoke the dissolution by delivering to the department for filing articles of revocation of dissolution, together with a copy of its articles of dissolution, that include all of the following information:
181.1404(3)(b)
(b) The effective date of the dissolution that was revoked.
181.1404(3)(c)
(c) The date that the revocation of dissolution was authorized.
181.1404(3)(d)
(d) If the corporation's board or the incorporators revoked the dissolution, a statement to that effect.
181.1404(3)(e)
(e) If the corporation's board revoked a dissolution authorized by the members alone or in conjunction with another person, a statement that revocation was permitted by action by the board alone pursuant to that authorization.
181.1404(4)
(4) Effective date. Revocation of dissolution is effective upon the effective date of the articles of revocation of dissolution.
181.1404(5)
(5) Effect of revocation. When the revocation of dissolution is effective, it relates back to and takes effect as of the effective date of the dissolution and the corporation resumes carrying on its activities as if dissolution had never occurred.
181.1404 History
History: 1997 a. 79.
181.1405
181.1405
Effect of dissolution. 181.1405(1)
(1)
Powers of dissolved corporation. A dissolved corporation continues its corporate existence but may not carry on any activities except those appropriate to wind up and liquidate its affairs, including any of the following:
181.1405(1)(a)
(a) Preserving and protecting its assets and minimizing its liabilities.
181.1405(1)(b)
(b) Discharging or making provision for discharging its liabilities and obligations.
181.1405(1)(c)
(c) Disposing of its properties that will not be distributed in kind.
181.1405(1)(d)
(d) Returning, transferring or conveying assets held by the corporation upon a condition requiring return, transfer or conveyance, which condition occurs by reason of the dissolution, in accordance with the condition.
181.1405(1)(e)
(e) Transferring, subject to any contractual or legal requirements, its assets as provided in or authorized by its articles of incorporation or bylaws.
181.1405(1)(g)
(g) If no provision has been made in the corporation's articles of incorporation or bylaws for distribution of assets on dissolution, transferring its assets to its members or, if it has no members, to those persons whom the corporation holds itself out as benefiting or serving.
181.1405(1)(h)
(h) Doing every other act necessary to wind up and liquidate its assets and affairs.
181.1405(2)
(2) Matters not affected by dissolution. Dissolution of a corporation does not do any of the following:
181.1405(2)(b)
(b) Subject its directors or officers to standards of conduct different from those under
subch. VIII.
181.1405(2)(c)
(c) Change quorum or voting requirements for its board or members; change provisions for selection, resignation, or removal of its directors or officers or both; or change provisions for amending its bylaws.
181.1405(2)(d)
(d) Prevent commencement of a proceeding by or against the corporation in its corporate name.
181.1405(2)(e)
(e) Abate or suspend a proceeding pending by or against the corporation on the effective date of dissolution.
181.1405(3)
(3) Retention of exclusive use of name. Except as provided in
s. 181.1421 (6) and unless a dissolved corporation registers its corporate name under
s. 181.0403 (2), the dissolved corporation retains the exclusive use of its corporate name for 120 days after the effective date of its articles of dissolution or for a shorter period if specified in its articles of dissolution under
s. 181.1403 (1) (g).
181.1405 History
History: 1997 a. 79.
181.1406
181.1406
Known claims against dissolved corporation. 181.1406(1)(1)
Definition. In this section, "claim" does not include a contingent liability or a claim based on an event occurring after the effective date of dissolution.
181.1406(2)
(2) Disposition of known claims. A dissolved corporation may dispose of the known claims against it by following the procedure described in this section.
181.1406(3)
(3) Notice requirements. The dissolved corporation shall notify its known claimants in writing of the dissolution at any time after its effective date. The written notice shall include all of the following information:
181.1406(3)(a)
(a) A description of the information that must be included in a claim.
181.1406(3)(c)
(c) The deadline, which may not be fewer than 120 days from the effective date of the written notice, by which the dissolved corporation must receive the claim.
181.1406(3)(d)
(d) The claim will be barred if not received by the deadline.
181.1406(4)
(4) When claims barred. A claim against the dissolved corporation is barred if any of the following occurs:
181.1406(4)(a)
(a) A claimant who is given written notice under
sub. (2) does not deliver the claim to the dissolved corporation by the deadline.
