2011 Iowa Code
TITLE XII BUSINESS ENTITIES
SUBTITLE 2 BUSINESS AND PROFESSIONAL CORPORATIONS AND COMPANIES
CHAPTER 489 REVISED UNIFORM LIMITED LIABILITY COMPANY ACT
489.702 Winding up.

489.702 Winding up.

1. A dissolved limited liability company shall wind up its activities, and the company continues after dissolution only for the purpose of winding up.

2. In winding up its activities, all of the following apply to a limited liability company:

a. It shall discharge the company s debts, obligations, or other liabilities, settle and close the company s activities, and marshal and distribute the assets of the company.

b. It may do all of the following:

(1) Deliver to the secretary of state for filing a statement of dissolution stating the name of the company and that the company is dissolved.

(2) Preserve the company activities and property as a going concern for a reasonable time.

(3) Prosecute and defend actions and proceedings, whether civil, criminal, or administrative.

(4) Transfer the company s property.

(5) Settle disputes by mediation or arbitration.

(6) Deliver to the secretary of state for filing a statement of termination stating the name of the company and that the company is terminated.

(7) Perform other acts necessary or appropriate to the winding up.

3. If a dissolved limited liability company has no members, the legal representative of the last person to have been a member may wind up the activities of the company. If the person does so, the person has the powers of a sole manager under section 489.407, subsection 3, and is deemed to be a manager for the purposes of section 489.304, subsection 1, paragraph b .

4. If the legal representative under subsection 3 declines or fails to wind up the company s activities, a person may be appointed to do so by the consent of transferees owning a majority of the rights to receive distributions as transferees at the time the consent is to be effective. All of the following apply to a person appointed under this subsection:

a. The person has the powers of a sole manager under section 489.407, subsection 3, and is deemed to be a manager for the purposes of section 489.304, subsection 1, paragraph b .

b. The person shall promptly deliver to the secretary of state for filing an amendment to the company s certificate of organization to do all of the following:

(1) State that the company has no members.

(2) State that the person has been appointed pursuant to this subsection to wind up the company.

(3) Provide the street and mailing addresses of the person.

5. The district court may order judicial supervision of the winding up of a dissolved limited liability company, including the appointment of a person to wind up the company s activities pursuant to any of the following:

a. On application of a member, if the applicant establishes good cause.

b. On the application of a transferee, if all of the following apply:

(1) The company does not have any members.

(2) The legal representative of the last person to have been a member declines or fails to wind up the company s activities.

(3) Within a reasonable time following the dissolution a person has not been appointed pursuant to subsection 4.

c. In connection with a proceeding under section 489.701, subsection 1, paragraph d or e .

2008 Acts, ch 1162, §50, 155; 2009 Acts, ch 133, §161