How can a club be dissolved and what happens to the club's assets?
September 24, 2022 | 50,00 EUR | answered by Roberta Lahn
Dear lawyer,
My name is Leonie Schneider and I am a board member of an association in my community. Unfortunately, we have been losing members in the past few years and the interest in our activities has decreased significantly. We have been considering dissolving the association as we see no future prospects and our financial resources are running low.
My concern, however, is what will happen to the association's assets if we dissolve it. While we do not have large reserves, there is still a certain amount of assets that we have accumulated over the years. I want to ensure that this money is used in a meaningful way and in accordance with the statutes if the association no longer exists.
Could you please explain to me what steps we need to take to dissolve the association and what exactly will happen to the association's assets? Are there any legal provisions that we need to consider? And how can we ensure that the assets are not simply lost or misused?
I look forward to your professional advice and thank you in advance for your support.
Sincerely,
Leonie Schneider
Dear Mrs. Schneider,
Thank you for your inquiry regarding the dissolution of your association and the associated questions regarding the association's assets. It is understandable that you are concerned about the use of the assets and want to ensure that they are used in accordance with the association's statutes. Indeed, there are legal provisions that you must consider when dissolving an association to ensure that the assets are properly managed.
First and foremost, it is important that as a board member, you properly decide on the dissolution of the association. This is usually done at a general meeting, where the dissolution is decided upon by a majority of the members present. It is advisable to document this decision in writing and register it in the association register.
After the dissolution of the association, liabilities must be settled. Only once all debts have been paid off can the assets of the association be used. There are various ways in which the assets can be dissolved. The association's statutes may already specify how the assets should be used in the event of dissolution. If this is not the case, there are legal provisions that allow the assets to be used for tax-exempt purposes or for the acquisition of assets for another tax-exempt association.
To ensure that the assets are not lost or misused, I recommend appointing a liquidator. The liquidator is responsible for managing the association's assets and properly dissolving them. They must ensure that the assets are used in accordance with the association's statutes and that all legal requirements are met.
If you have any further questions regarding the dissolution of your association or need assistance with the process, I am at your disposal. I hope that this information is helpful to you and wish you success in the dissolution of your association.
Sincerely,
Roberta Lahn
