Under what circumstances may a court order an involuntary dissolution of a corporation?
A) When the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, when the directors have abused their power, and when the corporation is insolvent.
B) When the corporation obtained its article of incorporation fraudulently, when the directors have abused their power, and when the corporation is insolvent.
C) When the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, and when the directors have abused their power.
D) When the corporation has failed to show a profit for over two years, when the corporation obtained its article of incorporation fraudulently, and when the corporation is insolvent.
E) Only when the corporation is insolvent.

Question

Quizplus · Accepted Answer

Courts may order an involuntary dissolution of a corporation for reasons such as fraudulent procurement of articles of incorporation, abuse of power by directors, and insolvency. Failure to show a profit alone is not typically a ground for involuntary dissolution.

Under What Circumstances May a Court Order an Involuntary Dissolution