Captial Asset Liquidation

I'm not sure if this is an appropriate newsgroup to ask this question. I'm asking the following question to you as a starting point:
I'm involved in making a decision of whether or not to acquire a
capital asset for an entity. The money sitting in the bank account of the entity belongs to all the members of the entity. That capital asset was proposed to be acquired for the benefits of the members. However, since that asset amounts to a large sum of money up front and depreciates as it is an electronic equipment, there are confusion on what would need to be done on that capital asset when the entity is gone. Would the liquidation process involve selling the capital asset ,and then sending the total sum of money to whoever should get the money in the order as specified by law?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

************************************************** The formulation of your question I find confusing. A. There seems to be a bit of electronic equipment belingings to X B. X has money in the bank C. X has some kind of shareholders D. You are thinking of aqcuiring X E. Over time the equipment will depreciate F. The depreciated asset might have residual value; there might be residual (financial) assets in X
Is your question whether those financial assets will be yours to pocket after the equipment is totally depreciated, or whether it belongs to the "shareholders"? Then my answer would be that would depend opon the terms of the contracts between the "shareholders" and X. Those contracts do not die with the death of the equipment, however, what is X? Does it have a statute, what does it say about the rights of the "shareholders"?
Adrian.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.