Liquidating trustee certification
A person named in a certificate of cancellation as a liquidating trustee shall not be subject to liability as a general partner by reason of being so named.
A trust certificate is a bond or debt investment, usually in a public corporation, that is backed by other assets.
(A) Upon the winding up of a limited partnership, the assets shall be distributed in the following order: (1) To creditors, including partners, to the extent permitted by law, in satisfaction of liabilities of the limited partnership other than liabilities for distributions to partners pursuant to section 1782.31 or 1782.34 of the Revised Code; (2) Except as otherwise provided in the partnership agreement, to partners and former partners in satisfaction of liabilities for distributions pursuant to section 1782.31 or 1782.34 of the Revised Code; (3) Except as otherwise provided in the partnership agreement, to partners first for the return of their contributions and second with respect to their partnership interests, in the proportions in which the partners share in distributions.
(B) A limited partnership that has dissolved shall pay or make reasonable provision to pay all claims and obligations, including all contingent, conditional, or unmatured claims and obligations, that are known to the limited partnership and all claims and obligations that are known to the limited partnership but for which the identity of the claimant or obligee is unknown.
The potential type of company assets used to create a trust certificate can vary, but most typically are other shares of company stock or physical equipment.
Investors holding trust certificates usually experience a higher level of safety than investors owning unsecured or uncollateralized bonds.
Di Falco then filed counterclaims against Aigner and third party-claims against the Company seeking, among other things, judicial dissolution of the Company and the appointment of a liquidating trustee.
The parties agreed to bifurcate the claims to expedite their claims regarding governance of the Company and hold their remaining claims for damages in abeyance.
Investors or creditors who have taken the least risk are paid first.Unless otherwise provided in a partnership agreement, any remaining assets shall be distributed as provided in this chapter.No liquidating trustee winding up the affairs of a limited partnership who has complied with this section shall be personally liable to the claimants of the dissolved limited partnership by reason of his actions in winding up the limited partnership.Moreover, the Agreement included a mechanism for an independent representative to vote in place of an interested manager in matters regarding conflicts of interest, notably because Defendants and their family members control a variety of entities with which the Company did business.This governance structure proved to be “a recipe for deadlock” which occurred amongst management regarding many issues, including deciding with whom they should partner to manufacture their existing products and develop new drugs and whether the Company should focus on research and development or the creation of an internal sales force.