Sec. 12.50. Grounds for judicial dissolution in actions by nonshareholders.

261 words·~1 min read·/il/chapter-805/act-5/12-50

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A Circuit Court may dissolve a corporation:

(1)In an action by the Attorney General, if it is established that:

(i)The corporation filed its articles of incorporation through fraud; or

(ii)The corporation has continued to exceed or abuse the authority conferred upon

it by law, or has continued to violate the law, after notice of the same has been given to such corporation, either personally or by registered mail; or

(iii)Any interrogatory propounded by the Secretary of State to the corporation, its

officers or directors, as provided in this Act, has been answered falsely or has not been answered fully within 30 days after the mailing of such interrogatories by the Secretary of State or within such extension of time as shall have been authorized by the Secretary of State.

(2)In an action by a creditor, if it is established that:

(i)The creditor's claim has been reduced to judgment, a copy of the judgment has

been returned unsatisfied, and the corporation is insolvent; or

(ii)The corporation has admitted in writing that the creditor's claim is due and

owing, and the corporation is insolvent.

(3)In an action by the corporation to dissolve under court supervision, if it is

established that dissolution is reasonably necessary because the business of the corporation can no longer be conducted to the general advantage of its shareholders.

(b)As an alternative to dissolution, the court may order any of the other remedies contained in subsection

(b)of Section 12.55.