Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Thank you for your question and welcome to Just Answer.
Are you trying to officially dissolve the HOA under Missouri law?
That's an interesting response you received, then. Did they give a reason as to why the dissolution was improper?
Also, did you entitle that part of the Articles "Dissolution", or something similar?
DISSOLUTION CLAUSE: Upon the dissolution of the corporation, the Board of Directors shall,
after paying or making provisions for the payment of all of the liabilities of the corporation,
dispose of all the assets of the corporation exclusively for the purposes of the corporation in such
manner, or the such organization or organizations organized and the time qualify as an exempt
organization or organizations under Section 501(c)(3) of the Internal Revenue Code of 1954 (or
the corresponding provision of any future United States Internal Revenue Law), as the Board of
Directors shall determine.
Any such assets not so disposed of shall be disposed of by the Circuit Court of the county in
which the principal office of the corporation is then located, exclusively for such purposes or to
such organization or organizations, as said Court shall determine, which are organized and
operated exclusively for such purposes.
And then they told me had to go to IRS to read the Statute for Nonprofit. THey would not give me a direct answer. Dancing . . .
I see the problem now.
Non-profits must only distribute to non-profits under IRS rules. You cannot distribute to the homeowners because they are not non-profits. The only organizations that can receive the assets would be other non-exempt organizations. Any such organizations found here would be valid, for instance.
I will be happy to follow up with you if you have additional questions. In the meantime, please click ACCEPT so that I can get credit for answering your question. Of course, if you really liked what I could help you with, please consider a Bonus, too!
"the Circuit Court of the county in
operated exclusively for such purposes."
Sorry. Either would be fine. As long as the dissolution results in the assets going to a non-profit, you're going to be fine.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).