Disposal of assets on liquidation

Any property remaining after the liquidation of the public benefit organization shall be transferred to an organization designated for performing public benefit activities with the same or similar non-profit purposes. The recipient organization could be specified in the statute and if it is not, the court determines it.

In case that a recipient organization cannot be found, the property shall be given to the municipality where the dissolved organization had its seat. The municipality shall donate the property to the achievement of purposes that are most similar to the purposes of the dissolved public benefit organization. The distribution of the property on liquidation of mutual benefit organizations /MBO/ is defined in the statute, the articles of incorporation or by the decision of the governing body.

If a decision on distribution has not been made prior to the dissolution, such a decision shall be made by the liquidator. The property of a non-profit legal entity, registered as MBO, that remains after satisfaction of the creditors shall be distributed proportionally among the members of an association or among the members of the bodies of a foundation. If the persons specified do not exist or if they cannot be determined, the property shall pass on to the municipality where the legal person has its seat.