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Representation For Corporate Dissolution Litigation

Friends, families, colleagues and associates join their collective resources and forces to conduct business. No matter the size of the corporate entity or the participants in the entity, what started out well may deteriorate to the point that some or all parties in the corporation or partnership have to split up.

How Corporate Dissolution Can Occur

There are several ways for the parties to unwind a business’s ownership interests. The parties may split amicably, or the fighting amongst the participants may make it impossible to separate without judicial and court intervention. The personalities involved and the nature, strength or weakness of the business are the main factors that drive the separation process. Often, the business may be the sole source of revenue for a participant. Other times, the participant is a manager or a passive investor in the business.

In any event, the law provides an orderly (at least on paper) process to wind up the affairs of the business and for the participants to extract their interest in and to the business that is not a publically traded company. Corporate dissolution under the New York Business Corporation Law provides leverage for an individual holder, or collective group of holders of 20% or more of the votes of all outstanding shares of corporation mechanisms to dissolve the company.

In order to dissolve the corporation, the law requires a finding of special circumstances that include the guilty finding of the directors or those in control of the corporation of illegal, fraudulent or oppressive conduct toward the complaining shareholders. This can include the looting, waste or diversion of corporate property for noncorporate purposes. The court must also decide that dissolution is the only feasible means for the complaining shareholder to obtain a fair return on their investment; whether the dissolution of the corporation is necessary for the protection of the rights and interests of the shareholders who are not petitioning the court.

Getting Representation You Can Depend On

The Manhattan lawyer you choose to represent your best interests can define the outcome of your dissolution case. Make sure an attorney you can count on is representing you by emailing us here to schedule your free initial consultation today.