What are the options for dissolving a club and how is the assets distributed?
September 20, 2022 | 40,00 EUR | answered by Emilia Vöss
Dear lawyer,
I am Hilde Schottmann and a member of an association that is facing financial difficulties. We are struggling to cover our ongoing costs and have been operating at a loss for several years in a row. We have taken various measures to improve the situation, but without success.
Now we are faced with the difficult decision to dissolve the association. However, I am concerned about the distribution of the association's assets. What options are available to dissolve the association and how can the assets be fairly distributed among the members? Are there any legal regulations that we need to consider?
I would be very grateful if you could provide me with more detailed information on this matter. I want to ensure that the dissolution of the association is carried out legally correctly and that the assets are distributed fairly and in compliance with the law.
Thank you in advance for your support.
Sincerely,
Hilde Schottmann
Dear Mrs. Schottmann,
Thank you for your inquiry regarding the dissolution of your association due to financial difficulties. The dissolution of an association is a complex process that is subject to certain legal regulations. There are generally two ways to dissolve an association: dissolution by decision of the general assembly or dissolution by court decision.
If your association is no longer able to operate due to financial problems, you can convene an extraordinary general assembly to decide on the dissolution. It is important that the dissolution is approved by a majority of at least three quarters of the members present. After the decision to dissolve, you must appoint a liquidator to take over the settlement of the association's assets.
In the event of dissolution, the association's assets must be distributed fairly and in accordance with the law among the members. According to § 47 of the Civil Code, the remaining association assets must be used for a charitable purpose after all liabilities have been settled. It is therefore not possible to distribute the assets among the members. Instead, you must transfer the assets to another charitable association or institution.
It is important to comply with all legal regulations when dissolving the association to avoid legal consequences. It may be useful to seek advice from an experienced lawyer specializing in association law to ensure that the dissolution is carried out correctly and in compliance with the law.
I hope this information is helpful to you. If you have any further questions or need assistance, I am at your disposal.
Best regards,
Emilia Vöss
