Which of the following is true regarding situations in which a court may order an involuntary dissolution of a corporation?
A) A court may order an involuntary dissolution of a corporation under the following four circumstances: 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) A court may order an involuntary dissolution of a corporation under the following three circumstances: when the corporation obtained its article of incorporation fraudulently, when the directors have abused their power, and when the corporation is insolvent.
C) A court may order an involuntary dissolution of a corporation under the following three circumstances: 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) A court may order an involuntary dissolution of a corporation under the following three circumstances: 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) A court may only order an involuntary dissolution of a corporation when the corporation is insolvent.

Question

Quizplus · Accepted Answer

Courts can force involuntary dissolution for three reasons (RMBCA 14.30):
1. The corporation obtained its articles of incorporation fraudulently.
2. The directors have abused their power.
3. The corporation is insolvent.

Which of the Following Is True Regarding Situations in Which