§ 8717 Corporate Asset Distribution Rules

• •When a company closes, its stuff (like money or property) must be given out in a certain way.
• •First, check the company's rules (articles or bylaws) to see how to split the stuff. If the rules say how, follow them.
• •If the rules don’t say how, split the stuff fairly among the members based on what they own.

A small local club decides to close down because not enough people are joining anymore.

The club has some money left and a few tables and chairs. The club’s rules say that if it closes, the money goes to a local charity, and the tables and chairs go to the members who helped the most. So, they follow the rules and give the money to the charity and split the tables and chairs among those members.