Asked by Randy Sandoval on Jul 07, 2024
Verified
A shareholder may not petition a court for corporate dissolution.
Corporate Dissolution
The process of legally terminating the existence of a corporation, involving the cessation of business operations, liquidation of assets, and distribution of the residual to creditors and shareholders.
Shareholder Petition
A formal request or action taken by one or more shareholders of a company, often to address grievances or propose changes in company policy or management.
- Understand the conditions under which a shareholder may petition for corporate dissolution.
Verified Answer
AE
Abria EzellJul 11, 2024
Final Answer :
False
Explanation :
A shareholder may petition a court for corporate dissolution under certain circumstances, such as when there is deadlock among the directors, acts of directors or those in control of the company are illegal, oppressive, or fraudulent, or the corporate assets are being misapplied or wasted.
Learning Objectives
- Understand the conditions under which a shareholder may petition for corporate dissolution.