View Full Version : Florida law dissolution of an S corporation?
MAJOTHOCACHLO
Sep 15, 2011, 03:57 PM
Hi! I would like to know how can an S corporation can be dissolve if the sharehoders do not come to an agreement?
twinkiedooter
Sep 15, 2011, 08:24 PM
Does the corporation have an attorney? If so, then contact the attorney and have him draw up the appropriate paperwork to dissolve this S corporation.
AK lawyer
Sep 16, 2011, 10:18 PM
Hi! I would like to know how can an S corporation can be dissolve if the sharehoders do not come to an agreement?
First, it doesn't matter, under state law, whether it's a "S" corporation or a "C" corporation. An "S" corporation is a corporation which has made an election under the Internal Revenue Code, which has nothing to do with dissolution.
Florida statute provides four ways a corporation can be dissolved:
Dissolution by incorporators or directors (http://www.flsenate.gov/Laws/Statutes/2011/607.1401);
Dissolution by board of directors and shareholders (http://www.flsenate.gov/Laws/Statutes/2011/607.1402);
administrative dissolution (http://www.flsenate.gov/Laws/Statutes/2011/607.1420); and
judicial dissolution (http://www.flsenate.gov/Laws/Statutes/2011/607.1430).
The last link I gave sets out the grounds for judicial dissolution. I looks like the most common basis for such dissolution would be that the "directors are deadlocked in the management of the corporate affairs, the shareholders are unable to break the deadlock, and irreparable injury to the corporation is threatened or being suffered ...".