Illinois Compiled Statutes 805 ILCS 105/112.50 – Grounds for judicial dissolution
Current as of: 2024 | Check for updates
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A Circuit Court may dissolve a corporation:
(a) In an action by the Attorney General, if it is established that:
(1) the corporation filed its articles of
(a) In an action by the Attorney General, if it is established that:
Terms Used In Illinois Compiled Statutes 805 ILCS 105/112.50
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fraud: Intentional deception resulting in injury to another.
- Interrogatories: Written questions asked by one party of an opposing party, who must answer them in writing under oath; a discovery device in a lawsuit.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(1) the corporation filed its articles of
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incorporation through fraud;
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(2) the corporation has continued to exceed or abuse
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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;
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(3) any interrogatory propounded by the Secretary of
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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;
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(4) the corporation has solicited money and failed to
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use the money for the purpose which it was solicited, or has fraudulently solicited money or fraudulently used the money solicited; or
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(5) the corporation has substantially and willfully
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violated the provisions of the Consumer Fraud and Deceptive Business Practices Act.
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(b) In an action by a member entitled to vote, or a director, if it is established that:
(1) the directors are deadlocked, whether because of
(1) the directors are deadlocked, whether because of
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even division in the number thereof or because of greater than majority voting requirements in the articles of incorporation or the bylaws, in the management of the corporate affairs; the members are unable to break the deadlock; and irreparable injury to the corporation is thereby caused or threatened;
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(2) the directors or those in control of the
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corporation have acted, are acting, or will act in a manner that is illegal, oppressive or fraudulent;
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(3) the corporate assets are being misapplied or
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wasted; or
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(4) the corporation is unable to carry out its
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purposes.
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(c) In an action by a creditor, if it is established that:
(1) the creditor’s claim has been reduced to
(1) the creditor’s claim has been reduced to
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judgment, the judgment has been returned unsatisfied, and the corporation is insolvent; or
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(2) the corporation has admitted in writing that the
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creditor’s claim is due and owing, and the corporation is insolvent.
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(d) In an action by the corporation to dissolve under court supervision, if it is established that the corporation is unable to carry out its purposes.