Asked by Caryse Janée on Jun 30, 2024
Verified
A dissolution may be judicially decreed if a proceeding is brought by the state, a shareholder, or a creditor.
Judicially Decreed
Formally ordered or adjudged by a court.
State
A political entity with a centralized government that has sovereignty over a geographical area and maintains a monopoly on the legitimate use of force within that area.
Shareholder
An individual or institution that owns at least one share of a company's stock, making them a partial owner.
- Acquire knowledge about the part played by the secretary of state in initiating involuntary dissolution as a consequence of unpaid annual franchise taxes.
- Acquire an understanding of the effects of dissolution on the existence and obligations of a corporation.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
A dissolution of a corporation can indeed be judicially decreed if a proceeding is brought by the state (typically for legal or regulatory violations), a shareholder (for reasons such as deadlock or fraud), or a creditor (if the corporation is insolvent or in default on its obligations).
Learning Objectives
- Acquire knowledge about the part played by the secretary of state in initiating involuntary dissolution as a consequence of unpaid annual franchise taxes.
- Acquire an understanding of the effects of dissolution on the existence and obligations of a corporation.
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