Date of dissolution

In the ordinary course of events, the date of the dissolution of an association will not be in dispute. This will be the date when a formal resolution is passed to wind up the association. But, exceptionally, an association may become inactive for an exceptionally long period of time, the formal resolution to wind up the body may not, in itself, reflect the true state of affairs concerning the date of termination. In these circumstances, the extraordinarily prolonged period of inactivity may offer strong evidence of spontaneous dissolution. The court will decide, on the facts, the precise date of dissolution. The subsisting members of the association will then be entitled to participate in the distribution of the assets. But mere inactivity, by itself, is insufficient to constitute spontaneous dissolution. The association may be treated as going through a dormant period.