Alabama § 10A-5A-7.06 - Application of Assets in Winding Up Limited Liability Company’s Activities and Affairs.
Full text of Alabama Code of Alabama § 10A-5A-7.06 — Application of Assets in Winding Up Limited Liability Company’s Activities and Affairs., with citation guidance and answers to common questions.
§ 10A-5A-7.06. Application of Assets in Winding Up Limited Liability Company’s Activities and Affairs.
Upon the winding up of a limited liability company, the assets shall be applied as follows:
(a) Payment, or adequate provision for payment, shall be made to creditors, including, to the extent permitted by law, members who are creditors, in satisfaction of liabilities of the limited liability company.
(b) After a limited liability company complies with subsection (a), any surplus must be distributed:
(1) first, to each person owning a transferable interest that reflects contributions made on account of the transferable interest and not previously returned, an amount equal to the value of the person’s unreturned contributions; and
(2) then to each person owning a transferable interest in the proportions in which the owners of transferable interests share in distributions before dissolution.
(c) If the limited liability company does not have sufficient surplus to comply with subsection (b)(1), any surplus must be distributed among the owners of transferable interests in proportion to the value of their respective unreturned contributions.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 10A-5A-7.06
What does Code of Alabama § 10A-5A-7.06 cover?
Section 10A-5A-7.06 ("Application of Assets in Winding Up Limited Liability Company’s Activities and Affairs.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 10A-5A-7.06?
A common citation format is "Code of Alabama § 10A-5A-7.06" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 10A-5A-7.06 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.