Numerous factors come into play when considering whether to dissolve a corporation that you are a shareholder or director in. The first is whether you can even do so, and under what method (judicial action or non-judicial action).
For example, an involuntary dissolution action can be filed with the court to dissolve the corporation in instances where those in control of the corporation have committed fraud or there is a deadlock among the shareholders. (California Civil Code Section 1800 et seq.)
There is also the option of seeking voluntary dissolution. For a more detailed discussion of voluntary dissolution, please click here.
In either situation, there is the potential for the corporation or the remaining shareholders to buy-out the party(ies) seeking dissolution.
Reviewing your options with an attorney and financial advisor will help ensure you make the most informed decision possible.
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