{"data":{"id":"us-al/ala.-code-10a-3a-11.07","jurisdiction":"us-al","citation":"Ala. Code § 10A-3A-11.07","heading":"Effect of Dissolution.","body":"(a) A dissolved nonprofit corporation continues its existence as a nonprofit corporation but may not carry on any activity except as is appropriate to wind up and liquidate its activities and affairs, including:\n(1) collecting its assets;\n(2) disposing of its properties that will not be distributed in kind;\n(3) discharging or making provisions for discharging its liabilities;\n(4) distributing its remaining property as required by law, its certificate of incorporation, bylaws, and as approved when the dissolution was authorized; and\n(5) doing every other act necessary to wind up and liquidate its activities and affairs.\n(b) In winding up its activities and affairs, a dissolved nonprofit corporation may:\n(1) preserve the nonprofit corporation’s activities and affairs and property as a going concern for a reasonable time;\n(2) prosecute, defend, or settle actions or proceedings whether civil, criminal, or administrative;\n(3) transfer the nonprofit corporation’s assets;\n(4) resolve disputes by mediation or arbitration; and\n(5) merge or convert in accordance with Article 12 or 13 of this chapter or Article 8 of Chapter 1.\n(c) Dissolution of a nonprofit corporation does not:\n(1) transfer title to the nonprofit corporation’s property;\n(2) subject its directors or officers to standards of conduct different from those prescribed in Article 8 of this chapter ;\n(3) change:\n(i) quorum or voting requirements for its board of directors or members;\n(ii) provisions for selection, resignation, or removal of its directors or officers or both; or\n(iii) provisions for amending its bylaws;\n(4) prevent commencement of a proceeding by or against the nonprofit corporation in its corporate name;\n(5) abate or suspend a proceeding pending by or against the nonprofit corporation on the effective date of dissolution; or\n(6) terminate the authority of the registered agent of the nonprofit corporation.\n(d) A distribution in liquidation under this section may only be made by a dissolved nonprofit corporation.","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 3A Alabama Nonprofit Corporation Law.","Article 11 Dissolution.","Division A Voluntary Dissolution."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-3A-11.07","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:54Z","sha256":"2abfe8e1551a7a9c35281c307a80bf3c59b27fabd5ca3263b35df80e57dd4425","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-3a-11.06","next":"us-al/ala.-code-10a-3a-11.08"},"notice":"GroundRules: Original legal text. Not legal advice."}