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Involuntary Dissolution

Definition - What does Involuntary Dissolution mean?

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 involuntary dissolution.

Justipedia explains Involuntary Dissolution

When majority shareholders decide to dissolve a company, it is called 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.

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