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

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What subject does Ohio Revised Code § 1745.56 address?

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Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Ohio source before relying on this text.

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