§ 8718 Corporate Asset Distribution Rules

• •When a company closes, its stuff (money, property, etc.) can be given out to people who own shares.
• •The stuff can be given out all at once or in small parts over time.
• •The way stuff is given out must be fair and follow the company's rules.
• •The stuff should be given out as soon as it makes sense to do so.

A small toy company goes out of business and has $100,000 left after paying all its bills.

The company can give the $100,000 to its shareholders. It can give each person their share all at once or in smaller payments over time. The company must make sure everyone gets their fair share and follows its own rules for closing down.