plan-of-liquidation

name	plan-of-liquidation
title	Plan of Liquidation and Dissolution
description	Drafts a Plan of Liquidation and Dissolution for U.S. corporations undergoing voluntary dissolution. Covers board/shareholder approvals, creditor notice, asset liquidation priority, distribution waterfalls, state dissolution filings, and IRS Form 966 compliance. Use when winding down a corporation, drafting dissolution plans, or preparing liquidation documents for corporate closings.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/plan-of-liquidation
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	corporate
language	en

Plan of Liquidation and Dissolution

Drafts a formal plan for winding down a U.S. corporation — satisfying creditors, distributing assets, and achieving legal dissolution under state statutes and federal tax rules.

Prerequisites

Gather before drafting:

1. Corporate formation documents — articles, bylaws, amendments (especially liquidation preferences for multiple share classes)
2. Board resolution — approving dissolution with vote count, quorum, date
3. Shareholder approval — minutes or written consent showing requisite vote threshold met
4. Creditor inventory — known creditors with addresses, amounts, secured/unsecured status
5. Asset inventory — real property, equipment, IP, receivables, investments, cash
6. Pending obligations — litigation, contracts, employee benefits, environmental liabilities
7. State of incorporation — jurisdiction-specific dissolution statute requirements

Quick Start

1. Confirm board and shareholder approvals are documented
2. Identify state dissolution statute (e.g., DGCL § 275, RMBCA § 14.02) [VERIFY]
3. Draft plan sections in order below
4. Mark all jurisdiction-specific items with [VERIFY]
5. Use bracketed placeholders for dates and amounts the client must confirm

Plan Sections

1. Preamble & Recitals

Element	Content
Corporate identity	Full legal name, state/date of incorporation, principal office
Statutory authority	Cite state dissolution statute [VERIFY]
Board determination	Dissolution serves best interests of corporation and shareholders
Business rationale	Brief factual basis — avoid detail creating liability exposure

2. Approval & Authorization

• Board vote: date, vote count, quorum confirmed
• Shareholder vote: date, shares for/against by class, statutory threshold met
• Written consent in lieu of meeting: document notice/consent compliance
• Separate class votes if preferred stock has special voting rights

3. Creditor & Stakeholder Notice

Notice Type	Requirements