Alabama § 10A-2A-14.05 - Effect of Dissolution.

§ 10A-2A-14.05. Effect of Dissolution.

(a) A dissolved corporation continues its existence as a corporation but may not carry on any business except as is 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 stockholders;

(3) discharging or making provisions for discharging its liabilities;

(4) distributing its remaining property among its stockholders according to their interests; and

(5) doing every other act necessary to wind up and liquidate its business and affairs.

(b) In winding up its business and affairs, a corporation may:

(1) preserve the corporation’s business and affairs and property as a going concern for a reasonable time;

(2) prosecute, defend, or settle actions or proceedings whether civil, criminal, or administrative;

(3) transfer the corporation’s assets;

(4) resolve disputes by mediation or arbitration;

(5) merge or convert in accordance with Article 9 or 11 of this chapter or Article 8 of Chapter 1; and

(6) enter into a stock exchange in accordance with Article 11 of this chapter.

(c) Dissolution of a corporation does not:

(1) transfer title to the corporation’s property;

(2) prevent transfer of its stock or securities;

(3) subject its directors or officers to standards of conduct different from those prescribed in Article 8 of this chapter;

(4) change (i) quorum or voting requirements for its board of directors or stockholders;

(ii) provisions for selection, resignation, or removal of its directors or officers or both; or

(iii) 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.

(d) A distribution in liquidation under this section may only be made by a dissolved corporation. For purposes of determining the stockholders entitled to receive a distribution in liquidation, the board of directors may fix a record date for determining stockholders entitled to a distribution in liquidation, which date may not be retroactive. If the board of directors does not fix a record date for determining stockholders entitled to a distribution in liquidation, the record date is the date the board of directors authorizes the distribution in liquidation.