1. (a) A dissolved limited liability company shall wind up its activities and affairs, and, except as otherwise provided in § 29-807.06, shall continue after dissolution only for the purpose of winding up.

2. (b) In winding up its activities and affairs, a limited liability company:

   1. (1) Shall:

      1. (A) Discharge the company’s debts, obligations, or other liabilities, settle and close the company’s activities and affairs, and marshal and distribute the assets of the company; and
      2. (B) Deliver to the Mayor for filing a statement of dissolution stating the name of the company and that the company is dissolved; and

   2. (2) May:

      1. (A) Preserve the company activities and affairs and property as a going concern for a reasonable time;
      2. (B) Prosecute and defend actions and proceedings, whether civil, criminal, or administrative;
      3. (C) Transfer the company’s property;
      4. (D) Settle disputes by mediation or arbitration;
      5. (E) Deliver to the Mayor for filing a statement of termination stating the name of the company and that the company is terminated; and
      6. (F) Perform other acts necessary or appropriate to the winding up.
3. (c) 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 and affairs of the company. If the person does so, the person shall have the powers of a sole manager under § 29-804.07(c) and shall be deemed to be a manager for the purposes of § 29-803.04(a)(2).

4. (d) If the legal representative under subsection (c) of this section declines or fails to wind up the company’s activities and affairs, 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. A person appointed under this subsection:

   1. (1) Has the powers of a sole manager under § 29-804.07(c) and shall be deemed to be a manager for the purposes of § 29-803.04(a)(2); and

   2. (2) Shall promptly deliver to the Mayor for filing an amendment to the company’s certificate of organization to:

      1. (A) State that the company has no members;
      2. (B) State that the person has been appointed pursuant to this subsection to wind up the company; and
      3. (C) Provide the street and mailing addresses of the person.

5. (e) The Superior 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 and affairs:

   1. (1) On application of a member, if the applicant establishes good cause;

   2. (2) On the application of a transferee, if:

      1. (A) The company does not have any members;
      2. (B) The legal representative of the last person to have been a member declines or fails to wind up the company’s activities and affairs; and
      3. (C) Within a reasonable time following the dissolution a person has not been appointed pursuant to subsection (d) of this section; or
   3. (3) In connection with a proceeding under § 29-807.01(a)(4) or (5).

Editor's Notes

Application of Law 19-210: Section 7 of D.C. Law 19-210 provided that the act shall apply as of January 1, 2012.

Uniform Law: This section is based on § 702 of the Uniform Limited Company Act (2006 Act).

History

July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720

Mar. 5, 2013, D.C. Law 19-210, § 2(h)(8)(B), 59 DCR 13171

Effect of Amendments

The 2013 amendment by D.C. Law 19-210 substituted “activities and affairs” for “activities” throughout the section; and substituted “except as otherwise provided in § 29-807.06, shall continue” for “the company shall continue” in (a).

Section References

This section is referenced in § 29-801.03, § 29-801.07, and § 29-802.03.