CHAPTER 45. VOLUNTARY DISSOLUTION
IC 23-1-45
Chapter 45. Voluntary Dissolution
IC 23-1-45-1
Corporation that has not issued shares or commenced business
Sec. 1. A majority of the incorporators or initial directors of a
corporation that has not issued shares or has not commenced
business may dissolve the corporation by delivering to the secretary
of state for filing articles of dissolution that set forth:
(1) the name of the corporation;
(2) the date of its incorporation;
(3) either:
(A) that none of the corporation's shares has been issued; or
(B) that the corporation has not commenced business;
(4) that no debt of the corporation remains unpaid;
(5) that the net assets of the corporation remaining after
winding up have been distributed to the shareholders, if shares
were issued; and
(6) that a majority of the incorporators or initial directors
authorized the dissolution.
As added by P.L.149-1986, SEC.29.
IC 23-1-45-2
Proposal for dissolution; notice; adoption by shareholders
Sec. 2. (a) A corporation's board of directors may propose
dissolution for submission to the shareholders.
(b) For a proposal to dissolve to be adopted:
(1) the board of directors must recommend dissolution to the
shareholders unless the board of directors determines that
because of conflict of interest or other special circumstances it
should make no recommendation and communicates the basis
for its determination to the shareholders; and
(2) the shareholders entitled to vote must approve the proposal
to dissolve as provided in subsection (e).
(c) The board of directors may condition its submission of the
proposal for dissolution on any basis.
(d) The corporation shall notify each shareholder, whether or not
entitled to vote, of the proposed shareholders' meeting in accordance
with IC 23-1-29-5. The notice must also state that the purpose, or one
(1) of the purposes, of the meeting is to consider dissolving the
corporation.
(e) Unless the articles of incorporation or the board of directors
(acting under subsection (c)) require a greater vote or a vote by
voting groups, the proposal to dissolve to be adopted must be
approved by a majority of all the votes entitled to be cast on that
proposal.
(f) After a proposal for dissolution is adopted, the corporation
shall give the notices required by IC 6-8.1-10-9, IC 22-4-32-23, and
IC 32-34-1-25.
As added by P.L.149-1986, SEC.29. Amended by P.L.107-1987,
SEC.22; P.L.145-1988, SEC.6; P.L.31-1995, SEC.4; P.L.2-2002,
SEC.73.
IC 23-1-45-3
Filing of articles of dissolution; date of dissolution
Sec. 3. (a) At any time after dissolution is authorized, the
corporation may dissolve by delivering to the secretary of state for
filing articles of dissolution setting forth the following:
(1) The name of the corporation.
(2) The date dissolution was authorized.
(3) If dissolution was approved by the shareholders:
(A) the number of votes entitled to be cast on the proposal to
dissolve; and
(B) either the total number of votes cast for and against
dissolution or the total number of undisputed votes cast for
dissolution and a statement that the number cast for
dissolution was sufficient for approval.
If voting by voting groups is required, the information required
by this subdivision shall be separately provided for each voting
group entitled to vote separately on the plan to dissolve.
(b) A corporation is dissolved upon the effective date of its
articles of dissolution.
As added by P.L.149-1986, SEC.29.
IC 23-1-45-4
Revocation of dissolution
Sec. 4. (a) A corporation may revoke its dissolution within one
hundred twenty (120) days of its effective date.
(b) Revocation of dissolution must be authorized in the same
manner as the dissolution was authorized unless that authorization
permitted revocation by action by the board of directors alone, in
which event the board of directors may revoke the dissolution
without shareholder action.
(c) After the revocation of dissolution is authorized, the
corporation may revoke the dissolution by delivering to the secretary
of state for filing articles of revocation of dissolution, together with
a copy of its articles of dissolution, that set forth:
(1) the name of the corporation;
(2) the effective date of the dissolution that was revoked;
(3) the date that the revocation of dissolution was authorized;
(4) if the corporation's board of directors (or incorporators)
revoked the dissolution, a statement to that effect;
(5) if the corporation's board of directors revoked a dissolution
authorized by the shareholders, a statement that revocation was
permitted by action by the board of directors alone pursuant to
that authorization; and
(6) if shareholder action was required to revoke the dissolution,
the information required by section 3(a)(3) of this chapter.
(d) Unless a delayed effective date is specified, revocation of
dissolution is effective when articles of revocation of dissolution are
filed.
(e) 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 business as if dissolution had
never occurred.
As added by P.L.149-1986, SEC.29.
IC 23-1-45-5
Continuance of corporate existence; winding up affairs; effect of
dissolution
Sec. 5. (a) A dissolved corporation continues its corporate
existence but may not carry on any business except that 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 its shareholders;
(3) discharging or making provision for discharging its
liabilities;
(4) distributing its remaining property among its shareholders
according to their interests; and
(5) doing every other act necessary to wind up and liquidate its
business and affairs.
(b) Dissolution of a corporation does not:
(1) transfer title to the corporation's property;
(2) prevent transfer of its shares or securities, although the
authorization to dissolve may provide for closing the
corporation's share transfer records;
(3) subject its directors or officers to standards of conduct
different from those prescribed in IC 23-1-33 through
IC 23-1-37;
(4) change:
(A) quorum or voting requirements for its board of directors
or shareholders;
(B) provisions for selection, resignation, or removal of its
directors, or officers, or both; or
(C) 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.
As added by P.L.149-1986, SEC.29.
IC 23-1-45-6
Disposition of known claims; procedure
Sec. 6. (a) A dissolved corporation may dispose of the known
claims against it by following the procedure described in this section.
(b) The dissolved corporation shall notify its known claimants in
writing of the dissolution at any time after its effective date. The
written notice must:
(1) specify the amount that the dissolved corporation believes
will satisfy the claim;
(2) inform the creditor that it has the right to dispute the amount
of the claim and describe the procedure for disputing the
amount of the claim;
(3) provide a mailing address where a dispute of the amount of
the claim may be sent;
(4) state the deadline, which may not be fewer than sixty (60)
days after the effective date of the written notice, by which the
dissolved corporation must receive the dispute of the amount of
the claim; and
(5) state that the claim will be fixed at the amount specified by
the dissolved corporation if a dispute of the amount of the claim
is not received by the deadline.
(c) If the amount of the claim is disputed, the claimant must notify
the dissolved corporation of the dispute by the deadline. If the
dissolved corporation rejects the disputed amount, the claimant must
commence a proceeding to enforce the claim within ninety (90) days
after the effective date of the dissolved corporation's rejection notice.
(d) The amount of the claim is fixed if:
(1) the claimant does not notify the dissolved corporation by the
deadline; or
(2) the claimant who has notified the dissolved corporation of
a dispute and has received a rejection notice does not
commence a proceeding within ninety (90) days from the
effective date of the rejection notice.
(e) Regardless of a dispute in the amount of the claim, the
dissolved corporation must tender to the claimant the amount of the
claim as set forth by the dissolved corporation in the notice of claim
within thirty (30) days after the earliest of the following dates:
(1) The date that the claim becomes fixed.
(2) The date that the claimant commences the proceeding to
enforce the claim.
(f) For purposes of this section, "claim" does not include a
contingent liability or a claim based on an event occurring after the
effective date of dissolution.
As added by P.L.149-1986, SEC.29.
IC 23-1-45-7
Notice of dissolution; claims against dissolved corporation
Sec. 7. (a) A dissolved corporation may also publish notice of its
dissolution and request that persons with claims against the
corporation present them in accordance with the notice.
(b) The notice must:
(1) be published one (1) time in a newspaper of general
circulation in the county where the dissolved corporation's
principal office (or, if none in Indiana, its registered office) is
or was last located;
(2) describe the information that must be included in a claim
and provide a mailing address where the claim may be sent; and
(3) state that a claim against the corporation will be barred
unless a proceeding to enforce the claim is commenced within
two (2) years after the publication of the notice.
(c) If the dissolved corporation publishes a newspaper notice in
accordance with subsection (b), the claim of each of the following
claimants is barred unless the claimant commences a proceeding to
enforce the claim within two (2) years after the publication date of
the newspaper notice:
(1) A claimant who did not receive written notice under section
6 of this chapter.
(2) A claimant whose claim was timely sent to the dissolved
corporation but not acted on.
(3) A claimant whose claim is contingent or based on an event
occurring after the effective date of dissolution.
(d) A claim may be enforced under this section:
(1) against the dissolved corporation, to the extent of its
undistributed assets; or
(2) if the assets have been distributed in liquidation, against a
shareholder of the dissolved corporation to the extent of the
shareholder's pro rata share of the claim or the corporate assets
distributed to the shareholder in liquidation, whichever is less,
but a shareholder's total liability for all claims under this section
may not exceed the total amount of assets distributed to the
shareholder.
As added by P.L.149-1986, SEC.29. Amended by P.L.75-1990,
SEC.3.