Quote:
Originally Posted by Billy Nees
They would have to liquidate all of their holdings and pay outstanding debts. The rest of the monies would be distributed among the shareholders (members).
The only outstanding debts that I could think of would be the B.O.D.s salaries, property taxes and insurance. If the NHRA isn't racing then why hasn't the B.O.D. taken voluntary lay-offs along with pay reductions?
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Excess funds would not go to members. Per by-laws and state law the funds would have to go to another tax-exempt organization.
Bankruptcy isn’t always liquidation/closure. There are reorganizational bankruptcies, which allow an organization to restructure debt under bankruptcy protection.