A corporation dissolution can, in the first instance be handled by the documents that set up the corporation, either a shareholder’s agreement or in an LLC, and operating agreement. But there should have been some agreement in advance, if your papers have been well done, as to how our partnership or our business would dissolve if and when that time comes.
If the documents that created your corporation don’t address the possibility to dissolution, or if the document solutions are for whatever reason not workable in your situation, then we look to the statute to determine how we’re going to dissolve the corporation.
It basically begins with one shareholder or the other filling suit to dissolve and they’re very limited categories they have to show why this corporation must dissolve. Typically, either the Board of Directors can’t make decisions, the shareholders can’t make decision, because they’re deadlocked. They’re even or there’s some corporate waste going on. The assets of the corporation are being wasted. In those scenarios there is a statutory process by which the courts see the corporation through a dissolution procedure.