What happens to California companies that are 3 strikes offenders?
A. Companies whose home of incorporation is California will be dissolved after a court hearing before a judge. This is nothing new. The same thing sometimes happens now in the familiar bankruptcy proceedings as well as in suits for involuntary dissolution brought by shareholders or the Attorney General. The court has power to appoint a receiver to manage the business and preserve its property while arranging for it to be sold to others. The Corporate 3 Strikes Act strengthens this by requiring the judge to specifically issue orders necessary to ensure that jobs are not lost, to protect the local community and shareholder interests (though they may suffer significant losses).
