Involuntary Dissolution

Definition - What does Involuntary Dissolution mean?

The involuntary dissolution of a corporation may take place when shareholders of the company are at a disagreement over whether or not the company should be dissolved. Creditors and minority shareholders may elect for an involuntary dissolution.

Justipedia explains Involuntary Dissolution

When majority shareholders decide to dissolve a company, it is called a voluntary dissolution. Involuntary dissolution is usually carried out through judicial resolution. There can be various reasons for this, such as creditors securing a judicial resolution because of non-payment issues, illegal and fraudulent activities of the directors, etc.

Share this:

Connect with us

Find a Lawyer