Senate Bill sb1948

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    Florida Senate - 2003                                  SB 1948

    By Senator Wise





    5-596-03

  1                      A bill to be entitled

  2         An act relating to dissolution of corporations;

  3         amending s. 607.1406, F.S.; requiring a

  4         corporation to publish notification of its

  5         dissolution in a newspaper in each county where

  6         the corporation owns real or personal property;

  7         providing notice requirements; providing an

  8         effective date.

  9  

10  Be It Enacted by the Legislature of the State of Florida:

11  

12         Section 1.  Present subsections (8) through (15) of

13  section 607.1406, Florida Statutes, are redesignated as

14  subsections (9) through (16), respectively, a new subsection

15  (8) is added to that section, and present subsections (1),

16  (9), (11), (12), and (13) of that section are amended, to

17  read:

18         607.1406  Claims against dissolved corporation.--

19         (1)  A dissolved corporation or successor entity, as

20  defined in subsection (16) (15), may dispose of the known

21  claims against it by following the procedures described in

22  subsections (2), (3), and (4).

23         (8)  Any corporation dissolving under this section

24  shall publish a notice of corporate dissolution within 10 days

25  after adopting the articles of dissolution.  The notice must

26  appear once a week for 2 consecutive weeks in a newspaper of

27  general circulation in each county in the state where the

28  corporation owns real or personal property.  Such newspaper

29  shall meet the requirements as prescribed by law for such

30  purposes.  The notice must contain:

31         (a)  The name of the corporation;

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    Florida Senate - 2003                                  SB 1948
    5-596-03




 1         (b)  The date the corporate dissolution was authorized

 2  and the effective date of the dissolution;

 3         (c)  The name and mailing address of the person to

 4  notify for purposes of filing a claim against the corporation;

 5  and

 6         (d)  The deadline for notifying the corporation of the

 7  claim made.  This deadline may not be less than 120 days after

 8  the date that the notice was first published.

 9  

10  This subsection does not preclude or relieve the corporation

11  from its obligation to notify claimants as otherwise set forth

12  in this section.

13         (10)(9)  A dissolved corporation or successor entity

14  which has followed the procedures described in subsections

15  (2)-(8) (2)-(7):

16         (a)  Shall pay the claims admitted or made and not

17  rejected in accordance with subsection (3);

18         (b)  Shall post the security offered and not rejected

19  pursuant to subsection (5);

20         (c)  Shall post any security ordered by the circuit

21  court in any proceeding under subsections (6) and (7); and

22         (d)  Shall pay or make provision for all other

23  obligations of the corporation or such successor entity.

24  

25  Such claims or obligations shall be paid in full, and any such

26  provision for payments shall be made in full if there are

27  sufficient funds.  If there are insufficient funds, such

28  claims and obligations shall be paid or provided for according

29  to their priority and, among claims of equal priority, ratably

30  to the extent of funds legally available therefor.  Any

31  remaining funds shall be distributed to the shareholders of

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    Florida Senate - 2003                                  SB 1948
    5-596-03




 1  the dissolved corporation; however, such distribution may not

 2  be made before the expiration of 150 days from the date of the

 3  last notice of rejections given pursuant to subsection (3).

 4  In the absence of actual fraud, the judgment of the directors

 5  of the dissolved corporation or the governing persons of such

 6  successor entity as to the provisions made for the payment of

 7  all obligations under paragraph (d) is conclusive.

 8         (12)(11)  Directors of a dissolved corporation or

 9  governing persons of a successor entity which has complied

10  with subsection (10) (9) or subsection (11) (10) are not

11  personally liable to the claimants of the dissolved

12  corporation.

13         (13)(12)  A shareholder of a dissolved corporation the

14  assets of which were distributed pursuant to subsection (10)

15  (9) or subsection (11) (10) is not liable for any claim

16  against the corporation in an amount in excess of such

17  shareholder's pro rata share of the claim or the amount

18  distributed to the shareholder, whichever is less.

19         (14)(13)  A shareholder of a dissolved corporation, the

20  assets of which were distributed pursuant to subsection (10)

21  (9) is not liable for any claim against the corporation on

22  which a proceeding is not begun prior to the expiration of 3

23  years following the effective date of dissolution.

24         Section 2.  This act shall take effect July 1, 2003.

25  

26            *****************************************

27                          SENATE SUMMARY

28    Requires a corporation to publish notification of its
      dissolution in a newspaper in each county where the
29    corporation owns real or personal property.  Provides
      notice requirements.
30  

31  

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