Can a corporation do a simplified dissolution if its assets are insufficient to pay all of its liabilities?
No. A corporation must have sufficient funds to pay all liabilities, which cannot exceed $10,000, in order to do a simplified dissolution. If the dissolving corporation has arranged for the reduction and/or forgiveness of any debts and liabilities with its creditors and can thereby qualify for a simplified dissolution, it should attach a copy of any relevant agreements as exhibits to its petition. Insolvent corporations must follow the procedures for a judicial dissolution as outlined in Article 11 of the N-PCL.
Related Questions
- Can a corporation do a simplified dissolution if it has any remaining assets that require distribution to another tax-exempt organization?
- When should a corporation using the simplified dissolution procedure file its Plan of Dissolution with the Attorney General=s Office?
- When can a dissolving corporation use the simplified dissolution procedure?
