BLW 1002 Lecture Notes - Lecture 7: Legal Fiction, Sports Equipment, Online Gambling
25 Sep 2016
School
Department
Course
Professor
Document Summary
*note: corporation dissolution is not the same as bankruptcy* Three ways to dissolve a corporation: voluntary dissolution by shareholder vote, at shareholder meeting, majority vote to dissolve a corporation, corporations must: b. i. Distribute leftover cash to shareholder as a dividend: why would shareholders vote to dissolve a corporation? c. i. Because the corporation has made money and/or fulfilled its objective: this is common in cities like new york for apartments, business buildings, etc. Involuntary dissolution by state attorney general: forced upon shareholders by state attorney general a. i. State attorney general = chief law enforcement officer for state a. ii. If corporation does something not declared in the corporate charter or breaks corporate law, state attorney general goes to court to dissolve corporation: how do you kill a corporation? (seeing as it"s a legal fiction) c. i. Revoke the corporate charter: corporation will need to pay ny state d. i. Therefore, no much money is leftover to distribute to the shareholders.
