A corporation may be judicially dissolved when its management is deadlocked and the deadlock cannot be broken by the shareholders.

Question

Quizplus · Accepted Answer

This is true according to the Model Business Corporation Act (MBCA) and many state corporation laws. If the corporation's management is deadlocked and the shareholders are unable to resolve the issue, a court may order the corporation to be dissolved.

A Corporation May Be Judicially Dissolved When Its Management Is