48-2c-1308 - Distribution of assets on winding up.
48-2c-1308. Distribution of assets on winding up.
(1) After dissolution, and during winding up, the assets of the company shall be appliedto pay or satisfy:
(a) first, the liabilities to creditors other than members, in the order of priority as providedby law;
(b) second, the liabilities to members in their capacities as creditors, in the order ofpriority as provided by law; and
(c) third, the expenses and cost of winding up.
(2) Company assets remaining after application under Subsection (1) shall be allocatedand distributed to the members as provided in the articles of organization or operating agreement,or if not so provided, in accordance with the members' final capital account balances afterallocation of all profits and losses including profits and losses accrued or incurred during windingup.
Enacted by Chapter 260, 2001 General Session