Liquidation

Once the dissolution of an association has been decided, its assets will be liquidated, i.e. liabilities and assets will be specified and debts settled or receivables collected as far as possible. The liquidation is usually carried out by the committee. The remaining assets are used in accordance with the articles of association; usually they are passed on to a related institution. In the absence of such provision, the general meeting or the committee shall decide on their use. If this is not possible, the surplus falls to the community or to the public sector.
After the liquidation, the legal personality of the association expires. If the association is registered in the commercial register, the entry must be deleted.

Disbanding an association (vitamin B)

Question

We are in the process of establishing a new association that wants to launch a new sport in the municipality. Can we write in the articles association that in the event of the association's dissolution, the liquidation proceeds will be handed to the municipality for management. (If a new association with the same objectives is founded.) Should it be stated in the dissolution article that the association records should be handed over to the municipality for archiving?

Answer

Generally speaking, the articles of association should not contain any provisions that also pertain to third parties if they have not provided their express consent to such a regulation. Specifically, this means that associations must enquire with the municipality as to whether it agrees to manage the money and archive the association records.

Liquidation

Liquidation proceeds and association records?

Question

Answer