How can a club be dissolved?
August 27, 2022 | 50,00 EUR | answered by Otto Krebs
Dear lawyer specializing in association law,
I am Oliver Breitwieser and a board member of an association that is currently facing a difficult situation. In recent years, our association has lost members, finances are tight, and the activities of the association have decreased. We are now considering the best way to dissolve the association.
Currently, we have very few members left to keep the association running. The income from membership fees is no longer sufficient to cover the operating costs, let alone initiate new projects. The motivation of the remaining members has also decreased, as it is difficult to achieve the goals of the association.
My concerns lie in the fact that we do not know how to legally dissolve the association. We want to ensure that no mistakes are made that could have legal consequences. Additionally, we want to use the remaining association funds wisely and ensure that all members are informed and involved.
Therefore, my question to you is: How can an association be dissolved? What steps do we need to take to wind up the association properly and what legal aspects must we consider? Are there ways to use the remaining funds of the association effectively or donate them to other charitable organizations?
I thank you in advance for your support and advice in this difficult situation.
Sincerely,
Oliver Breitwieser
Dear Mr. Breitwieser,
I understand your concerns and am happy to assist you with advice and support in resolving the dissolution of your association. The dissolution of an association is a complex process that requires certain legal steps to ensure that everything is handled properly.
First and foremost, it is important that the dissolution of the association is done through a resolution of the general assembly. This resolution must be provided for in the association's statutes and must be adopted by a majority of the members. It is important that this resolution is properly documented to later prove that the dissolution of the association was done lawfully.
After the resolution to dissolve has been adopted, the assets of the association must be managed. Typically, the statutes of the association specify how the association's assets should be handled in the event of dissolution. Often, the assets of a dissolved association are transferred to another nonprofit organization or foundation. It is important that this transfer is properly documented to avoid potential legal issues.
Furthermore, you must ensure that all of the association's liabilities are settled before the association is dissolved. This includes outstanding bills, contracts, and any debts. It is important that all open matters of the association are organized and concluded to prevent future legal problems.
Additionally, it is advisable to register the dissolution of the association with the relevant commercial register court. There, you must submit all necessary documents and have the dissolution of the association officially registered.
Overall, the dissolution of an association is a time-consuming process that must be carefully planned and executed. I am here to assist you with every step of the process and ensure that the dissolution of your association is legally sound.
Best regards,
Otto Krebs, Attorney
