Statutory provisions do not protect creditors upon the dissolution of a corporation.

Question

Quizplus · Accepted Answer

Statutory provisions do protect creditors upon the dissolution of a corporation. Depending on the jurisdiction, there are usually laws in place that require the corporation to pay off its debts before distributing any remaining assets to shareholders. Additionally, creditors may have the ability to recover their debts by making claims against the corporation's assets.

Statutory Provisions Do Not Protect Creditors Upon the Dissolution of a Corporation