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  1. #1
    Join Date
    Jun 2012
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    4

    Default At Which Point in a Corporate Dissolution Are Fiduciary Duties No Longer Imposed

    My question involves business law in the state of: California

    As the question above states. Let's assume it is a voluntary dissolution of a corporation.
    1) Are fiduciary duties of directors no longer a legal obligation after an agreement to dissolve?
    2) Or after the articles of dissolution are filed?

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    64,895

    Default Re: At Which Point in a Corporate Dissolution Are Fiduciary Duties No Longer Imposed

    No, they are not.

    What are the facts?

  3. #3
    Join Date
    Jun 2012
    Posts
    4

    Default Re: At Which Point in a Corporate Dissolution Are Fiduciary Duties No Longer Imposed

    The Fact are:
    1)There are 2 shareholders 40% and 51% split c corp
    2)The company is near insolvency
    3)The minority shareholder has a loan out to the corporation
    4)The minority shareholder does not want to dissolve
    5)The majority shareholder wants to dissolve, however the minority shareholder is
    claiming that dissolution is a breach of fiduciary duty.
    6)The majority shareholder is also an officer, president.

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