Ohio Code § 1745.56
Ohio Code § 1745.56. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 1745.56.
(A) The members, the managers, and the officers of an unincorporated nonprofit association
shall not be personally liable for any obligation of the association. (B)(1) Managers who vote for or assent to any of the following shall be jointly and severally
liable to the association as provided in division (B)(2) of this section: (a) A distribution of assets to members contrary to law or the governing principles; (b) A distribution of assets to persons other than creditors during the winding up of
the affairs of the association on dissolution or otherwise without the payment of
all known obligations of the association or without making adequate provision for
that payment; (c) The making of loans, other than in the usual conduct of its affairs or in accordance
with provisions for the making of loans in the governing principles, to an officer,
manager, or member of the association. (2) The managers described in division (B)(1) of this section shall be jointly and severally
liable to the association as follows: (a) In cases under division (B)(1)(a) of this section, except as provided in division
(B)(3) of this section, up to the amount of the distribution in excess of the amount
that could have been distributed without violation of law or the governing principles
but not in excess of the amount that would inure to the benefit of the creditors of
the association if it was insolvent at the time of the distribution or there was reasonable
ground to believe that by that action it would be rendered insolvent, or to the benefit
of the members other than members of the class in respect of which the distribution
was made; (b) In cases under division (B)(1)(b) of this section, except as provided in division
(B)(3) of this section, to the extent that those obligations that are not otherwise
barred by statute are not paid or for the payment of which adequate provision has
not been made; (c) In cases under division (B)(1)(c) of this section, for the amount of the loan with
interest at the rate of six per cent per annum until that amount has been paid. (3) A manager shall not be liable under division (B)(1)(a) or (b) of this section if
in determining the amount available for any distribution under that division, the
manager in good faith relied on a financial statement of the association prepared
by an officer or employee of the association in charge of its accounts or certified
by a public accountant or firm of public accountants, in good faith considered the
assets to be of their book value, or followed what the manager believed to be sound
accounting and business practice. (C) A manager who is present at a meeting of the managers or of a committee of the managers
at which action on any matter is authorized or taken and who has not voted for or
against that action shall be presumed to have voted for the action unless the manager's
written dissent from the action is filed either during the meeting or within a reasonable
time after the adjournment of the meeting, with the person acting as secretary of
the meeting or with the secretary of the association. (D) A member who knowingly receives any distribution made contrary to law or the governing
principles shall be liable to the association for the amount received by the member
that is in excess of the amount that could have been distributed without violation
of law or the governing principles. (E) A manager against whom a claim is asserted under or pursuant to this section and
who is held liable on the claim shall be entitled to contribution, on equitable principles,
from other managers who are also liable. Additionally, any manager against whom a claim is asserted under or pursuant to
this section or who is held liable on the claim shall have a right of contribution
from the members who knowingly received any distribution made contrary to law or the
governing principles, and those members as among themselves shall also be entitled
to contribution in proportion to the amounts received by them respectively. (F) No action shall be brought by or on behalf of an association upon any cause of action
arising under division (B)(1)(a) or (b) of this section at any time after two years
from the day on which the violation occurs. (G) Nothing in this section shall preclude any creditor whose claim is unpaid from exercising
any rights that the creditor otherwise would have by law to enforce the creditor's
claim against the assets of the association distributed to the members or other persons.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 1745.56
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
Verify the text
Statute text is transcribed from the official Ohio Revised Code. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Ohio attorney.
Common questions
What is the source of Ohio Revised Code § 1745.56?
The text above is transcribed from the Ohio Revised Code, the codified statutes of Ohio. The official publisher link appears under "Verify the text" on this page.
What subject does Ohio Revised Code § 1745.56 address?
It addresses the rule set out in the section text. Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Ohio Revised Code § 1745.56 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Ohio source before relying on this text.
Can this page be used as legal advice?
No. This is a reference transcription for research. Applying Ohio law to your facts requires a licensed Ohio attorney who can review the specifics.