Opinion ID: 2276676
Heading Depth: 1
Heading Rank: 5

Heading: Assignment of rights and delegation of duties are appropriates part of the winding-up process

Text: The validity of the former DeBaliviere association's assignment is determined by section 355.691, RSMo 2000, which specifies the permissible activities of a dissolved corporation: A dissolved corporation continues its corporate existence but may not carry on any activities except those appropriate to wind up and liquidate its affairs, including: (1) Preserving and protecting its assets and minimizing its liabilities; (2) Discharging or making provision for discharging its liabilities and obligations; (3) Disposing of its properties that will not be distributed in kind; (4) Returning, transferring or conveying assets held by the corporation upon a condition requiring return, transfer or conveyance, which condition occurs by reason of the dissolution, in accordance with such condition; (5) Transferring, subject to any contractual or legal requirements, its assets as provided in or authorized by its articles of incorporation or bylaws; . . . (8) Doing every other act necessary to wind up and liquidate its assets and affairs. Assignment of rights under a contract is within the bounds of winding-up and, therefore, is a permissible activity. Smith v. Taylor-Morley, Inc., 929 S.W.2d 918, 923 (Mo.App.1996). Veal argues that, according to his reading of the declaration, the assessments are to be used only for purchasing additional property for the development area. Enforcement of the assessments is not a proper winding-up activity, he argues, because by collecting a general assessment, the new association is doing so to add property to the land subject to the declaration. But the question is whether the former association had the authority to assign its rightsnot how the new DeBaliviere Place Association is authorized to spend the money collected from the assessments. The former DeBaliviere association can assign any right to the new DeBaliviere association without exercising that right. There is nothing in section 355.691which specifies the authority of a dissolved corporationto prohibit the new association from exercising its rights under the declaration.