A court may dissolve a corporation in a proceeding brought by a shareholder when:

Question

Quizplus · Accepted Answer

All three options are valid reasons for a court to dissolve a corporation in a proceeding brought by a shareholder. If the corporate assets are being misapplied, it can harm the shareholders' interests and warrants intervention. A deadlock between directors or shareholders can paralyze decision-making and ultimately threaten the existence of the corporation. Therefore, in such cases, the court may dissolve the corporation to protect the stakeholders' interests.

A Court May Dissolve a Corporation in a Proceeding Brought