What is a corporate dissolution?
Dissolution of a corporation occurs when the shareholders of the corporation can no longer get along, or the Board of Directors can no longer make decisions for the corporation. This will typically occur in a 50-50 corporation. You and a friend start a business together. You incorporate it. You each have equal say in the business. Time passes, and you begin to have differences of opinion about how the business should be run. But since neither of you can muster a majority for your respective points of view, the corporation becomes, in effect, deadlocked, and it’s unable to make any movement at all. In that case, what would likely be recommended is to dissolve the corporation, and there’s a legal process for how corporations are dissolved.