Yes if the faction is closed then everyone must fall under the flag of KGB.

Luckily for everyone involved, the faction was never closed.

When the first set of officers (including me) attempted to get the faction closed we were told we would have to wait for a set amount of time, we were also told we had to reach an active membership quota. The time constraint was met but we never had the membership to get the guild off the ground. Not only that, the hardcore aspect of the guild, which was the officer core, got fed up with the lack of activity among its member and all left. This to me was the final nail in the coffin, that is when we should have called it.